2024 was a tumultuous year for retailers, with the country experiencing one of the hardest retail recessions experienced in years. As the e-commerce industry moves through its growing pains, staying ahead of the curve is essential for businesses to stay afloat in a competitive marketplace. We look at the top five retail predictions.

As Australia’s leading e-commerce resource, Power Retail, is proud to collaborate with Checkout.com on The Future of Ecommerce Report, created to deliver expert-led insights in the world of retail for 2025.

Packed with exclusive insights from ten leading ecommerce experts and industry professionals, The Future of Ecommerce by Power Retail is a 29-page report highlights top predictions for the year ahead and their implications for retail businesses aiming to thrive in 2025. Here we’ve compiled the top five predictions: 

Experience Driven Consumerism

Reflecting on the “Taylor-mania” phenomenon from earlier this year, when Taylor Swift’s Eras Tour had a chokehold on Australia, it pointed to how this event epitomized a broader shift in consumer behaviour.

Power Retail Editor Rosalea Catterson says, “The fact that Taylor Swift tickets, themed outfits, and hospitality experiences sold out around the country while the cost-of-living pressures mounted, really proves that people are willing to put their wallets where their interests, values, and things that spark joy are.”

In 2025, we’ll see retailers capitalising on this through interactive pop-up stores, experiential in-store events, and loyalty programs that reward engagement, as consumers increasingly seek out shopping experiences that go beyond transactions.

Loyalty Programs

Expanding on the role of loyalty programs, in 2025, they will continue to play a pivotal role in addressing consumer priorities amid rising cost-of-living pressures.

Sarah Richardson, Chair of the Australian Loyalty Association shares, “Shoppers are increasingly focusing on value and transparency, so will be accessible programs that offer clear value through regular discounts, cashback, and simplified points redemption. Expanding earning opportunities, such as multiplied points or exclusive promotions, are also great opportunities for brands to make a significant impact with their loyalty programs.”

For Gen Z in particular, programs that integrate flexible payment options like BNPL, will further stand out, aligning with the demand for innovative and accessible loyalty solutions.

AI in Retail

AI will have a transformative impact on retail in 2025, as it will continue to reshape customer experiences and aid backend operations. In fact, when Power Retail polled their network of retailers, 100% of respondents said that they are embracing AI as they head into 2025.

Irving Lee, APAC Retail Industry Lead at Microsoft predicts, “On the customer-facing side, 2025 will see conversational commerce take flight, shifting shoppers from traditional “scroll-based” browsing to interactive ‘goal-based commerce.’ For leading ecommerce companies, AI shopping assistants will shift customers away from the basic search bar towards an interactive and highly personalised shopping experience. Similar capabilities will streamline and improve customer service post-purchase.”

Additionally, AI’s ability to analyse data from richer customer interactions will enable retailers to customize content dynamically and even influence product design and development.

Cross-Border Payment Solutions Taking Aussie Retailers Abroad

In 2025, more Australian retailers will look to expand internationally, driven by rising global consumer demand and the digital economy’s borderless opportunities. Optimised cross-border payment solutions—offering streamlined currency conversion, local payment methods, and compliance with international regulations—will play a pivotal role in this growth.

Brian Sze, APAC General Manager at Checkout.com says, “Supporting local acquiring of these methods, intelligent routing, and efficient currency conversion will help to reduce transaction costs for all parties, improve acceptance rates, and create a smoother checkout experience for international customers. Retailers with global-ready payment infrastructures will find themselves well-positioned to attract and retain customers worldwide.”

Increased Data Transparency

In 2025, stricter privacy laws under the Privacy and Other Legislation Amendment Bill 2024 will push Australian retailers to prioritize data transparency.

Customers will demand clarity on what data is collected, how it’s used, and the ability to opt in or out. Retailers will be forced to address the risks of retaining unnecessary data, and will need to adopt policies to destroy it after reasonable periods.

Alita Harvey-Rodriguez, Managing Director at MI Academy says, “We will all need to be a lot more transparent and responsible with customer data. The amendments confirm the Government’s view that entities have a responsibility to protect Australians’ personal information and not treat it merely as a commercial asset. We saw the Optus and the Medibank debacle, where hackers were able to get critical information like passport and Medicare information. Showing how risky it is to hold onto customer information that isn’t needed over a long period of time.

Retailers are guilty of this too. Keeping information that’s unnecessary for potential commercial use. To avoid getting into hot water, brands should have a point in their policies that says when they’re going to destroy customer information after a reasonable time. It’s going to be a fine balance between what marketers say they need and what legal teams say is the right thing to do!”

Additional trending areas highlighted in the report include social commerce, global commerce, marketplaces, profits, marketplaces and innovation. To read the full report visit https://powerretail.com.au/resources/the-future-of-ecommerce-report/.

Epson has introduced two new stylish mini laser TV projectors—the EF-21 and the EF-22—to the EpiqVision line-up. The new projectors offer an affordable big-screen, immersive lamp-free laser light source that delivers outstanding image quality for small businesses.

Both models are easy to set up, have a screen size of up to 150 inches, come with Google TV^{TM 1} built-in and two 5 W speakers, which can also be used as a stand-alone speaker via Bluetooth connectivity. The EF-22, available in metallic black, has the added convenience of an adjustable fixed stand, while the EF-21 comes in warm white or smoke ice green for a stylish addition to any interior.

The compact mini laser projectors can be projected in any direction – on a wall, ceiling or floor. The adjustable built in stand on the EF-22 can be rotated for even more flexible display options.

The EF-21 and EF-22 deliver a big screen entertainment experience either at home or on the go.  Epson’s 3LCD technology means images are bright and vivid with equally high white and colour light output that brings content to life. Both models have 5,000,000:1 contrast ratio to produce clearly defined shadows and deep blacks.

The EF-21 and EF-22 are easy to set up thanks to technologies including automatic focus, keystone correction, obstacle avoidance and screen fit.

Google TV^TM, which is built into both projector models, brings convenience to the user to stream a range of content, including movies, music videos and much more for any occasion.

With the Google Assistant, entertainment can be accessed quickly and devices can be controlled around the home.

The EpiqVision EF-21 and EF-22 mini smart laser projectors are expected to ship in Australia arriving in December 2024.

EpiqVision Key Features

• 1000 lumen colour and white brightness

• Laser light source projector

• 3LCD, 3 chip technology

• Auto correct function

• Google TV with Netflix

• Built-in twin 5W stereo speakers

To learn more, visit www.epson.com.au/hometheatre.

Australian small to medium-sized businesses (SMBs) are encountering significant challenges, with business failure rates climbing to 2020 levels. In October 2024, 5.04 per cent of companies failed, edging close to the 2020 peak of 5.08 per cent.  Alon’s research has identified the seven biggest 2025 challenges facing SMB in 2025.

Unfortunately, SMBs will continue to face considerable challenges going into the new year, with Alon Rajic, Founder of Small Business Loans Australia, conducting research to uncover the key challenges for SMBs in 2025.  

Alon says: “Small to medium-sized businesses make up 98 per cent of all businesses in Australia, and they are increasingly doing it tough. As we head into 2025, they will likely continue suffering resource shortages, reduced customer spending and continued inflation, all of which strain limited resources. Other challenges like bank fees on international transfers and cyberattacks can be reduced through preparation, awareness and allocation of resources. It is important that SMBs prepare for these hurdles and know how to receive support from either private financial providers or the Government.” 

Alon’s research identified the following seven biggest 2025 challenges facing SMB:  

1. Tighter employee laws. Recent industrial relations reforms are increasingly stretching small business resources and making it difficult for them to adapt resources to growth and changing markets. Reforms include a 5.2% increase in the national minimum wage; permitting ‘employee-like’ contractors to seek Commission intervention for unfair contract term disputes; not permitting pay secrecy clauses to address the gender pay gap; multi-employer bargaining; giving employees the enforceable right to seek flexible working conditions; and 10 days’ paid family and domestic violence leave annually. A study found that over half of Australian SMBs think that the Industrial Relations Reforms will make payroll procedures more complex, with many completely unprepared for the changes.¹ Forty (40) per cent of SMEs find it difficult to keep up with legislation and compliance obligations.²
2. SMEs will continue to be resource poor – but AI will help to alleviate business pressures. 43 per cent of SMBs consider the cost of hiring talent too much, and a further 47 per cent find the hiring process too lengthy.³ 25 per cent of SMBs indicated that lack of time and capacity was the main reason they were unable to adapt new technology into their business.⁴ Despite this, a study from Small Business Loans Australia found that 60 per cent of all Australian businesses are already using AI, or planning to integrate AI in the next two years. SMBs are adopting AI tools such as AI-powered reporting and chatbots with automated email replies to streamline time-consuming tasks and improve operational efficiency. Find the full report here: https://smallbusinessloansaustralia.com/are-small-to-medium-businesses-harnessing-the-power-of-ai/ 
3. Inadequate government support. Small businesses are finding it increasingly difficult to stay afloat in the current environment of rising wages, reduced customer spending and ongoing inflation. Without further government assistance, many will face increasingly difficult circumstances. In 2023-24, the number of companies forced into external administration grew by 39 per cent from 2022-23.³ In a survey of small-to-medium businesses by Small Business Loans Australia, 94 per cent of say they need more Government support to help them survive, and 41 per cent says they require financial support to pay wage increases. The full survey and results can be found here: https://smallbusinessloansaustralia.com/will-small-businesses-benefit-from-the-new-federal-government-incentives-in-fy2025/.
4. Increased competition. In 2025, small-to-medium businesses will start seeing more competition from an increasing number of Australians starting side hustles. Small Business Loans Australia survey found that 1 in 2 Australians are considering starting a small business in the next five years. A further 38 per cent would run a side hustle in addition to their main job. The survey found that the main motivator is to boost incomes as inflation and interest rates put pressure on household budgets. As consumer spending continues to drop, this will also place pressure on small-to-medium businesses. The full report can be viewed here: https://smallbusinessloansaustralia.com/factors-driving-small-business-start-ups-in-australia/.
5. Late payments impacting cash flow. Small-to-medium businesses will continue struggling with tight cash reserves. A survey found that in 2024, nearly half of businesses forced to reduce their own income and 31 per cent dipped into personal funds to cover business expenses. Alarmingly, one in five has zero cash reserves.⁴ This is exacerbated by late payments, which affect three-quarters of businesses.⁵ To add to the challenge, many small-to-medium businesses prioritise customer and client satisfaction over their own cash flow, leaving them hesitant to chase late payments. 
   
   
6. SMBs are increasingly vulnerable to cyberattacks. Data from Accenture’s Cost of Cybercrime Study found that 43 per cent of cyberattacks target small businesses. The number of reported cyberattacks has steadily risen, with 16,000 more cyberattacks in 2022 than in 2019. Limited resources could be a major factor in the increase, with the report finding that 48 per cent of SMBs spend less than $500 a year on cyber security. ⁶
7. Paying too much in financial services fees. Small-to-medium businesses often lack the resources and time to shop around for better rates across financial products, leading to many overpaying when transacting. Research has found that a large proportion pay too much when conducting international trade through a bank. A recent Money Transfer Australia study found that 62 per cent are trading internationally through the big four banks, despite generally higher exchange rate mark-ups and fees in comparison to specialist money providers. Businesses could be paying up to $850 in fees when transferring $20,000 through a bank, whereas a non-bank money transfer provider might charge as little as $100.⁷ Read the full report here: https://moneytransfer.com.au/are-australian-businesses-overpaying-on-transfers-in-2024/.