r cent of consumers visit stores to see, touch and try products, particularly in fashion, furniture and electronics. Consumers discover online, buy in-store Forrester research also supports this finding. It forecasts that while online sales will continue to grow, “digitally influenced offline” sales – where the product was discovered online but bought in-store – will also increase. The only category it predicts will shrink are offline-discovered, offline sales, falling from around 39 per cent today to 30 per cent. For this reason, it’s absolutely critical that traditional retailers continue to invest in digital as part of their omnichannel strategy. Our research shows that consumers demand a unified shopping experience. They don’t perceive the divide between physical and digital but expect a connected, consistent experience across all touchpoints. Bricks-and-mortar retailers have a unique asset in their physical stores. Many are undergoing transformations, such as Kmart’s repositioning of checkouts in the centre of stores, enabling shoppers to pass by and see more items. David Jones is investing in new store design with features such as personal stylists and spa experiences. Shopping is a social, shared activity for many consumers. But these traditional retailers must continue to bridge digital and physical retail, such as enabling social shopping and mobile discovery in-store. Many shoppers prefer to look up product information via their mobiles while browsing in stores, versus asking a store assistant for help. Having great product information on your site, enabling shoppers to verify and get transparency around key features, will help convert. The rise of social commerce While the majority of shoppers currently discover on social but buy in-store, social networks are pulling out all the stops to encourage purchasing in-stream. This includes creating shoppable content: digital media such as videos, images and livestreams, that allows people to buy featured products directly within the content. The trend of social discovery is reshaping the game for retailers. It’s also informing product development, with companies such as Shein and Temu looking at social to design products around what’s popular. TikTok has been particularly successful at social commerce. In just one year it outpaced platforms such as Pinterest, Instagram and Facebook in user-to-shopper conversion. Globally, it drew 47 million shoppers in 2024 who spent an average of $32 million daily. According to research by eMarketer, around 40 per cent of US Gen Z have made at least one purchase on TikTok Shop, as have 37 per cent of millennials. It predicts that US retail social commerce sales will pass the $100 billion milestone in 2025. Leveraging data and AI What sets these new online entrants apart is their powerful use of data and AI. They’re creating highly personalised experiences that make incredibly accurate product recommendations to individual users. To compete, Australian retailers must also leverage AI and automation technology to personalise engagement, streamline operations and enhance fulfilment speed. The “last mile” still remains a pain point in the Australian market and is one of the drivers for the continued popularity of in-store purchase: 77 per cent in our survey valued instant access to products. But with global competitors like Amazon now offering same-day delivery in some metro markets, other retailers must continue to elevate their offering. Our research found that 79 per cent of consumers appreciated fast shipping and home delivery, with flexible return policies and free return shipping also contributing to higher confidence in online shopping. Loyalty and personalisation are critical. This means moving beyond generic rewards to hyper-personalised experiences that build long-term consumer relationships. We found that 64 per cent of Australian shoppers expect AI-powered recommendations to improve their shopping experience by offering tailored product suggestions. Additionally, nearly a third (28 per cent) of consumers are frustrated by the absence of past purchase data when shopping in-store, because that makes it harder for retailers to deliver tailored experiences. Omnichannel and digital remain critical Even though most sales are made in bricks-and-mortar stores, online competition is growing. Traditional retailers must not rest on their laurels. They must ensure a cohesive digital strategy across all channels: discovery, buying and loyalty. You can’t get away with doing only one of these well. As the Australian Retailers Association RA Leaders Forum 2025 (ARA) noted recently: “Retailers that fail to prioritise digital investments will struggle to compete in 2025.” Currently, the omnichannel experience isn’t seamlessly connected. When there’s a break you don’t retain customer loyalty. No matter which channel a customer comes in through, they should be able to use the method they find most convenient for their lifestyle.  By embracing a seamless, data-driven omnichannel strategy, retailers will enhance customer satisfaction, increase conversion rates and build long-term loyalty, ensuring their success in an evolving retail landscape.