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      What does Australia's Retail sector look like in 2026?

      Australian retailers are adapting to a new era of opportunity shaped by resilience, reinvention, and rising consumer expectations. While economic recovery is underway, shoppers remain value-conscious and cautious, demanding convenience, personalisation, and ethical transparency from the brands they support.

      In Australian Retail Outlook 2026, produced by Inside Retail in collaboration with KPMG Australia, we explore how seamless omnichannel experiences have become the norm, with leading retailers harnessing AI, while navigating supply chain volatility and evolving sustainability standards.

      Looking ahead, growth will not come from business as usual, but from retailers rethinking how they operate, adapt and build human connection. Leaders will combine strategic clarity with disciplined execution, aligning technology, data, and operations in service of both the customer and the bottom line.

      Download the report for key insights into customer behaviour, value perception, and the importance of seamless supply chains. Plus, learn how the most agile brands connect authentically with their customers, embedding innovation at every touchpoint to deliver smart retail with heart.

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      Australian Retail Outlook 2026

      Thought leadership into what lies ahead for retail and how to respond. Powered by KPMG.
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      Retailers won’t grow by doing more of the same. Growth will come from reinventing how they operate, engage and differentiate. This is no longer an era of selling a good product alone. It’s about reconnecting with customers, instore and online, and delivering standout experiences that earn loyalty.
      Toni Jones

      Partner, Industry Leader – Corporate Brands

      KPMG Australia

      Five focus areas for Australian retailers

      In 2025, retail success was defined by resilience, reinvention, and rising consumer expectations. As we look to 2026, the promise of AI in retail is undeniable, but the path to full transformation remains complex, requiring strategic clarity and disciplined execution.

      Retail leaders are building resilience by nurturing high-performing talent, fostering adaptability, and encouraging cross-functional collaboration. Brands are also expanding into new markets and developing products that address cost-of-living pressures, all while maintaining a strong focus on employee wellbeing and community storytelling.

      Learn what industry specialists say about building resilience in uncertain times in Inside HQ – CEO: People Matter (PDF 15MB), in the report.

      AI is reshaping customer experience, from personalised service to smarter search and inventory. Underpinned by strong data foundations, AI is transforming both customer-facing and back-of-house operations.

      Retailers are deploying AI agents for customer service, personalisation, and marketing communications, with advanced search algorithms and data platforms improving convenience and efficiency.

      Find out why robust data management is the foundation for successful AI integration in Inside HQ – IT and Data: Rising to the Forefront (PDF 15MB), in the report.

      Retail finance leaders are prioritising liquidity, building strong banking relationships, and using rolling cashflow models for flexibility. AI is increasingly used in finance functions for governance, analysis, and negotiation.

      Retailers are also focusing on operational discipline, cost management, and community-building, all while navigating tariff challenges and changing customer behaviour.

      Learn more from leading retail finance leaders in Inside HQ – Finance: Facing Change (PDF 15MB), in the report.

      Globally, AI adoption is accelerating, but many retailers face challenges with data integration and governance. Successful transformation requires a strategic approach to data quality, cross-functional collaboration, and responsible AI practices.

      Building trust through robust governance and investing in AI literacy are essential for creating seamless, personalised customer experiences and maintaining a competitive edge.

      Discover the trends impacting retail and why they matter in International Trends: Building the Next Retail Advantage (PDF 15MB), in the report.

      Retailers are focusing on meaningful contracts and wellbeing initiatives to build a productive and resilient workforce. Technology is used to enhance roles, not replace them, with AI assistants and learning programs supporting skill development.

      Successful retailers are finding collaboration, retention, and a positive workplace culture are key to navigating industry changes and delivering great customer experiences.

      Find out how leading retailers are empowering their employees to build a resilient workforce in Inside HQ – Workforce: Culture Shift (PDF 15MB), in the report.

      Download: Australian Retail Outlook 2026

      Retail sector support: How KPMG can help

      Growth starts here

      We support Australian retailers in navigating the current business environment and to plan for what’s around the corner.

      Our retail group offers audit, tax and advisory services geared to the unique needs of the retail industry. We help our clients deal with a range of issues including:

      • supply  chain efficiencies
      • digital transformation
      • cybersecurity and trust
      • customer segmentation
      • international expansion tax implications
      • global workforce management
      • local regulatory operations
      • customer experience design and more.

      To discuss Australian retail sector trends in 2026 or how KPMG can help support Australian retailers, contact us.

      Contact us

      KPMG Australia's retail specialists

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      KPMG’s Retail group offers audit, tax and advisory services geared to the unique needs of the retailing industry.
      Retail

      KPMG's Turnaround and Restructuring team helps you to stabilise a business, enhance profitability and build a platform for sustainable growth.
      Turnaround & Restructuring

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