Retailers are up against a brutal truth. Nearly 7 out of 10 shoppers walk away at the last moment leaving full carts and lost revenue behind.
What’s happening: Australian retailers are scrambling to match the breakneck pace of digital-native consumers, particularly Gen Z and millennials, who expect instant gratification, intuitive interfaces, and real-time support across all touchpoints.
Why this matters: With retail trade surging 1.2% in June 2025 and nearly 70% of online shopping carts abandoned due to friction, retailers who can’t match customer speed risk losing substantial revenue to more agile competitors.
The Australian Bureau of Statistics recently released retail trade data showing a 1.2% surge in June 2025, as shoppers capitalised on End of Financial Year bargains. But beneath these promising numbers lies a more complex story about the relentless pace of modern consumer expectations.
Industry expert Maurice Zicman, who is also the Vice President of CX Strategy at TP Australia, argues that retailers face an unprecedented challenge: matching the speed of their customers or watching them click away to competitors.
Digital natives demand instant everything
The numbers tell a stark story. According to a Business Insights report consumers have fundamentally changed how they shop and interact with brands. Gen Z and millennials, representing massive spending power, don’t just prefer digital experiences – they live them.
“They want instant gratification, intuitive interfaces, fast and free shipping and returns, and real-time customer support,” Zicman explains. “If one business can’t deliver on those expectations, another option is only a swipe or click away.”
This shift has created what industry experts call a “customer acceleration era,” where consumers say one in ten of their interactions with brands results in a very poor customer experience, according to recent Qualtrics research.
The 70% problem haunting checkouts
Perhaps nowhere is this speed imperative more critical than at the point of purchase. Nearly 70% of online shopping carts are abandoned, often due to complex checkout processes, lack of payment options, or slow site speeds, based on Baymard Institute data.
“Every click is a potential drop-off point,” Zicman notes. “Simplifying the path to purchase and making it feel intuitive across desktop, mobile and social channels is no longer optional, it’s expected.”
The most innovative retailers are responding by integrating conversational AI within their social media channels, allowing customers to chat in real time for help with sizing, availability, or style advice. This approach generates incremental revenue while reducing friction across the customer journey.
Beyond algorithms: the human touch
Despite AI’s growing prominence, Zicman emphasises that emotional intelligence remains a critical differentiator. “Customers remember how a brand makes them feel, whether they feel heard, understood and valued,” he says.
The most successful retailers are adopting a “powered by EI, enabled by AI” approach. This strategy uses AI to handle repetitive queries while empowering service teams to focus on emotionally charged interactions like failed deliveries, returns, or payment issues.
Consumer trust declined 4% to 71%, advocacy fell 3% to 69%, and intent to rebuy dropped 4% to 69% in 2023, according to Qualtrics research, highlighting the importance of meaningful customer connections.
Data goldmine remains largely untapped
Most retailers sit on substantial customer data but struggle to transform it into actionable insights. AI can help create hyper-personalised experiences at scale, predicting cart abandonment, recommending products, and crafting resonant messaging.
“We’re also seeing growing interest in generative AI for everything from trend forecasting to dynamic product design,” Zicman observes. “In a market where the definition of ‘in style’ changes by the hour, this technology can help brands scale faster, test smarter and stay ahead of what’s next.”
Recent research shows that while Australian consumers report fewer poor experiences than the global average, expectations for improved service continue rising.
The agility imperative
Australian retailers must embrace agile decision-making and invest in transformation technologies that enable real-time responses to customer needs. This means partnerships with specialised providers, AI-powered customer service integration, and data-driven personalisation strategies.
The key ingredients for retail success increasingly centre on technological capabilities that enhance rather than replace human expertise.
“When a business isn’t evolving as fast as its customers do, it’s time to ask why,” Zicman concludes. “In the race to win the modern shopper, speed is no longer a luxury, it’s an expectation.”
The retailers that will thrive are those who recognise that customer acceleration isn’t just about faster delivery or quicker responses – it’s about creating seamless, emotionally intelligent experiences that make every interaction feel effortless and intuitive.
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