Circana, (Previously IRI and The NPD Group) has unveiled a new report titled 'The Future of Retail'. The report highlights a shift in consumer behaviour, with value becoming the primary focus for shoppers due to the escalating cost of living pressures.

Alistair Leathwood, Circana’s Head of Media, Insights and Analytics for Asia Pacific, states, 'As Australia continues to navigate the ongoing effects of inflation and the cost-of-living crisis, Aussies are shopping to find the best value for themselves, while retail is being reimagined, notably through technological advances.'

The report suggests that cost-of-living pressures are causing shoppers to change brands and be more selective in their shopping habits. Leathwood notes, 'Shoppers believe that supermarkets having good specials and promotions were more influential when deciding at which supermarket to shop at.'

In response to these changes, the use of loyalty cards and apps has seen an uptick among Australian shoppers. 'Keeping shoppers close and engaged through membership schemes that offer pricing advantages is now a key frontier for retailers,' Leathwood states.

Despite the rise of e-commerce, physical stores remain a crucial component of the retail landscape. The report indicates a rise in buy online and pickup in-store practices, with Leathwood stating, 'We don't expect the vast majority of FMCG sales to be digital anytime soon, so omnichannel and omnicategory leadership is key.'

The shopping experience is also evolving to become more multifaceted, with retailers focusing on delivering memorable experiences and moments through every available channel. 'Retailers are stepping up their game to deliver more than just product displays, there is now an expectation that retailers encompass shopping experiences like video personal shopping, live stream shopping, online lessons, virtual appointments and video consultations,' Leathwood notes.

The 'Future of Retail' report is designed to provide a snapshot of the changing retail landscape in Australia, highlighting the impact of cost-of-living pressures on consumer behaviour and the strategies retailers are employing to adapt.