Key retail findings include;
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83.4% of retail leaders believe AI and agentic commerce will have a significant or moderate impact on how shoppers buy
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Only 12% of retail leaders are fully confident their customer data, product data and marTech foundations are ready to support AI use cases
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81.2% of leaders rate their identity resolution maturity as developing at best
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83.3% rate their single customer view capability as developing at best
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Customer data platforms are the top marTech priority for retailers, with 57.8% planning investment over the next 12–18 months
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40% of retailers are exploring partnerships with AI platforms and technology providers to prepare for agentic commerce
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74.4% of retailers are restructuring or have already restructured around future growth priorities and specialist capability
Key brand manufacturer (FMCG, consumer & industrial brands) findings include;
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96% of brand manufacturers believe AI and agentic commerce will significantly or moderately impact shopper purchasing behaviour
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0% of leaders from brand manufacturers expressed full confidence in their AI foundations to support AI use cases, while 54% reported very low levels of confidence
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64% of brand manufacturers are expanding their use of marTech to power their omni-channel, AI and eCommerce ambitions
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Top 3 marTech investment areas for brand manufacturers over the next 12 – 18 months are AI tools (68.2%), eCommerce (40.9%) and Digital Asset Management (40.9%)
Australian retailers and brand manufacturers (FMCGs, consumer & industrial brands) are accelerating investment in AI, data and digital commerce capabilities, yet many organisations remain under prepared from a technology and infrastructure perspective as AI rapidly reshapes commerce.
The Inside Digital & eCommerce 2026 Report, from Arktic Fox and Six Degrees Executive, draws on insights from more than 100 Australian marketing, digital, eCommerce and retail media leaders. It finds retailers and brands are increasingly orienting around AI-driven discovery, personalisation and connected commerce experiences - yet foundational readiness across customer and product data as well as marTech continues to lag.
"The findings reveal a market at a genuine inflection point. For the first time, Gen Z outnumbers Baby Boomers in the workforce - and as their discretionary income grows, their expectations are reshaping commerce and experience. While retailer and brand manufacturers AI ambitions are accelerating rapidly, the foundational technology and data capability required to operationalise it will be the biggest hurdle. Poor data and ineffective marTech infrastructure will slow the pace of change and the ability to deliver on commercial and experience ambitions - and in a market moving this fast, that gap is hard to recover from," said Teresa Sperti, Director of Arktic Fox.
AI and agentic commerce are reshaping technology priorities
AI and agentic commerce investment and focus emerged as one of the strongest themes across the research, with retailers and brands expecting major disruption to how products are discovered, evaluated and purchased.
Most retailers are already directing investment in many key areas to adapt in a rapidly changing market with key investment areas including product content creation and optimisation (78.3%), onsite search and discoverability (76.1%), personalisation (67.4%) and customer service and support (65.2%). Yet readiness remains uneven. Only 12% of retailers are fully confident their customer data, product data and marTech foundations are ready to support AI-driven use cases.
For retailers the findings suggest AI is no longer being viewed as a standalone innovation initiative. Instead, it is increasingly becoming an enabling layer across customer experience, commerce operations, discoverability and service delivery.
Whilst on the brand side, half of all brands say they are adapting their search and discoverability strategy for AI.
"AI is fundamentally changing the interface between shoppers and commerce," said Sperti. "Productivity gains matter, but the real risk for retailers and brands is whether they are evolving as fast as adoption is growing. Over one billion people now use AI assistants worldwide, and global retailers and marketplaces are innovating at pace. Local organisations must keep up by delivering the right innovation to meet shifting shopper needs, while also leaning heavily into improving their visibility within AI agents if they are to protect share and sales."
Customer data and identity maturity remain significant barriers for retailers
As retailers pursue more personalised and connected customer experiences, customer data capability is increasingly becoming a strategic dependency.
However, the report found more than 81.2% of retailers rated identity resolution maturity as developing at best, while 83.3% reported their single customer view capability remained underdeveloped.
Fragmented marTech environments also continue to plague retailers limiting the ability to deliver a truly connected experience.
More than 73.3% of organisations reported customer and technology environments remain only partially integrated, creating challenges for orchestration and, activation and a further one in five report a fully fragmented marTech ecosystem.
As AI shifts from experimentation toward scaled experiences, the quality and accessibility of underlying customer and product data is becoming increasingly important.
"We've seen retailers launch AI features and experiences in the last 12 months - some impressive, others exposing real data problems. Hallucinating AI and recommendations straying into legally sensitive territory are not hypothetical risks - they're happening now. Retailers and brands must get their data house in order if their AI investments are to deliver the returns they expect and build the shopper trust they need," said Teresa Sperti, Director of Arktic Fox.
Omnichannel ambition continues to exceed integration capability
Delivering seamless omnichannel experiences remains one of the most strategically important priorities across the market, yet many organisations continue struggling with execution.
While nearly all retailers identified omnichannel experiences as strategically important, only 34.7% believe they currently possess mature capability.
At the same time, more than three quarters rated integrated fulfilment, returns and service experiences as developing at best.
Among brand manufacturers, 82.2% identified omnichannel delivery as strategically important, yet only 24% reported having a shared omnichannel strategy across the business. Brands often have less mature marTech ecosystems in place to also support their omni-channel ambitions. 64% of brand manufacturers are expanding their use of marTech to power their omni-channel, AI and eCommerce ambitions – which is a signal that the need and willingness to invest is growing in this sector.
The findings suggest technology integration challenges and organisational silos continue to be a key limiting factor inhibiting execution despite significant investment.
Skills and capability demands are evolving rapidly
Technology transformation is also reshaping workforce requirements.
The report found 74.4% of retailers are restructuring or have already restructured around future growth priorities and specialist capability, while 59% of brand manufacturers plan to maintain headcount while evolving team structures and internal capability.
As businesses continue investing in transformation initiatives, access to specialist talent is becoming increasingly difficult.
"Senior talent are assessing opportunities on the calibre of the executive leadership team, scope and influence of the role, opportunities for local and international growth, and whether the business is investing in the future of AI and digital transformation. The organisations coming out of this period strongest are the ones auditing their capability gaps now - and being clear on the skills they need, rather than replacing like for like." – Maya Wettenhall, Associate Director, Six Degrees Executive
About the report
The Inside Digital & eCommerce 2026 Report is produced by Arktic Fox and Six Degrees Executive and draws on insights from more than 100 Australian marketing, digital, eCommerce and retail media leaders across retail and brand manufacturer organisations.
The study was conducted between February and April 2026 through two tailored 41-question surveys designed specifically for retailers and brand manufacturers.
The report explores the evolving priorities, capabilities and challenges shaping AI, omnichannel, loyalty, retail media, eCommerce, marTech and digital shelf strategy across the Australian market.
About us:
About Arktic Fox
Arktic Fox advises and coaches brands across digital, data and eCommerce to help leaders navigate the evolving and ever-changing landscape. Specialising in digital strategy and transformation, eCommerce and digital shelf, marTech, loyalty and data, we partner with top Australian retailers and brand manufacturers (industrial, consumer brands and FMCG) to drive material growth and sustainable change to deliver growth outcomes.
About Six Degrees Executive
For over 20 years, Six Degrees Executive has been the trusted talent partner for businesses across Australia. As specialists in recruitment, executive search, and contracting solutions, we connect organisations with the very leaders who shape the future of their business. With offices in Melbourne, Sydney, and Brisbane, our team bring deep industry expertise across multiple functions such as digital, eCommerce, marketing, sales, technology, supply chain, procurement & more.
Contact details:
Teresa Sperti
www.arkticfox.io
P: 0418 101 577
