Australian retailers and brands race to prepare for AI-driven commerce, but capability gaps threaten growth

The report has surfaced a wealth of arresting key insights from across the local digital, eCommerce and retail media landscape, including: 

• 83.4% of retailers believe AI and agentic commerce will have a significant or moderate impact on how shoppers buy   

• Only 12% of retailers are fully confident their data and marTech foundations are ready to support AI-driven use cases   

• 89.1% of retailers see personalisation as strategically important, but only 10% believe they have mature capability to deliver it   

• 97.8% of retailers rate eCommerce growth as strategically important over the next 12–18 months   

• The top 3 areas garnering moderate to significant investment by retailers for AI and agentic commerce - Product content creation and optimisation (78.3%), improving onsite search & discoverability (76.1%), powering personalisation (67.4%) 

• 34.1% of retailers have observed a decline in traffic as a result of AI, 9% of retail leaders say traffic has declined by 4% or more 

• 78.6% of leaders agree their loyalty program needs to evolve to meet the changing needs of their consumers 

• 28% of retailers plan to trial rapid delivery over the next 12–18 months and a further 12% aim to increase investment within the channel 

• 30.3% of retailers now operate an owned marketplace as part of their broader eCommerce strategy 

• 24.2% are using rapid delivery channels and strategies as part of their eCommerce strategy 

Key brand manufacturer (FMCG, consumer & industrial brands) findings from the report include:  

• 96% of brand manufacturers believe AI and agentic commerce will significantly or moderately impact purchasing behaviour   

• Improving product content and digital shelf execution has become the number one priority for brands, surging from 33% in 2025 to 63.2% in 2026 in light of AI and the shifts underway in market 

• 52.9% of brands plan to increase retail media investment in the year ahead, but only 4.9% report high trust in retail media networks   

• 53.7% of brands leaders feel pressure from retailers to increase retail media spend without sufficient budget or capacity 

• 52.8% of brand manufacturers are now leveraging Amazon ads as a retail media network in 2026 (up 19.8% from last year) 

• 47.2% of brands are now managing five or more commerce channels, with more than one in five managing in excess of ten. 

• 12.9% of brands plan to trial quick commerce, with a further 29% aiming to increase investment and focus  

Australian retail and consumer and industrial brand leaders are accelerating investment in AI, loyalty, retail media and digital commerce - yet many still lack the foundational capability, data maturity and organisational alignment to fully capitalise on the opportunity.  

The Inside Digital & eCommerce 2026 Report, from Arktic Fox and Six Degrees Executive, draws on insights from more than 100 marketing, digital, eCommerce and retail media leaders to explore how retailers and brand manufacturers are navigating mounting competitive pressure, shifting shopper behaviour, and the rapid rise of agentic commerce. 

"The findings reveal a market at a genuine inflection point. For the first time, Gen Zs outnumber Baby Boomers in the workforce and as their discretionary income grows, their expectations are reshaping commerce significantly. Forward-thinking retailers and brand manufacturers are preparing for this shift, while simultaneously navigating the rapid rise of AI, agentic commerce and retail media. The opportunity ahead is significant, but in a tough economic climate, balancing change required and investing appropriately will challenge many," said Teresa Sperti, Director of Arktic Fox. 

AI and agentic commerce are redefining how shoppers discover and buy  

AI and agentic commerce emerged as one of the most significant forces reshaping the retail and brand manufacturing landscape, with both sectors expecting major disruption to how shoppers discover, evaluate and purchase products.  

The report found 83.4% of retailers believe AI and agentic commerce will have a significant or moderate impact on how shoppers buy, while 96% of brand manufacturers believe the impact will be significant or moderate.  

Retailers are already directing investment toward the area’s most likely to shape AI-driven commerce experiences, including product content creation and optimisation (78.3%), onsite search and discoverability (76.1%), personalisation (67.4%), customer service and support (65.2%), and self-serve insights (64.4%).    

For brand manufacturers, the implications are just as significant. As AI-driven recommendations reduce the number of options presented to shoppers, brands face a new challenge: ensuring their products are discoverable, and even considered within AI-powered shopping environments.  

Yet readiness remains uneven. Only 12% of retailers are fully confident their data (product and customer) and marTech foundations are ready to support AI-driven use cases. Among brand manufacturers, not a single respondent expressed full confidence in their foundations, with 54% reporting very low levels of confidence.  

"AI is fundamentally changing the interface between shoppers and commerce," said Sperti. "Productivity gains matter, but the real risk for brands and retailers 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 retailers must keep up delivering the right innovation to meet shifting shopper needs, while both brands and retailers need to lean heavily into improving their visibility within AI agents if they are to protect share and sales” Sperti said. 

Loyalty moves from retention lever to strategic data asset  

The report also found loyalty is becoming a more strategic commercial lever for retailers and brand manufacturers as organisations look to build richer first-party data assets, improve personalisation and create more connected customer experiences.  

More than four in five retail leaders see loyalty strategies as strategically important to their organisation’s overall strategy over the next 12–18 months, while 78.6% agree their loyalty program needs to evolve to meet changing customer expectations.  

For brand manufacturers, loyalty is also becoming a bigger strategic focus, with nearly half identifying loyalty strategies and initiatives as a priority over the next 12–18 months. Many are leaning into competitions, retailer loyalty-based initiatives, rewards and incentives, while almost one in three are focussed on brand-owned loyalty program strategies.  

“Loyalty is no longer just about points or discounts. It is becoming one of the few mechanisms capable of connecting data, experience and commerce across the customer journey. As organisations look to close the gap between omnichannel ambition and personalisation capability, loyalty is moving much closer to the centre of the growth strategy. It is also under greater scrutiny, as boards and shareholders increasingly recognise its role in underpinning retail media propositions" Sperti said.  

Retailers and brands are diversifying their eCommerce channel strategies to tap into active growth opportunities 

As organisations look to meet shoppers across a broader range of purchase missions and behaviours, retailers are increasingly expanding beyond traditional eCommerce models. Owned marketplaces continue to gain momentum, with 30.3% of retailers now operating an owned marketplace model to expand range and unlock new growth opportunities. 

Quick commerce (rapid delivery) is also becoming a more prominent part of the retail landscape. Nearly one in four retailers already leverage quick commerce platforms, while 28% plan to trial the channel over the next 12–18 months and a further 12% intend to increase investment. 

Whilst on the brand side 47% of brands are now leveraging five or more commerce channels to meet different shopper missions and reach shoppers where they buy.  

"What is striking is how the commerce growth agenda is evolving. Owned marketplaces and quick commerce are no longer emerging concepts; they're becoming table stakes for retailers serious about capturing the next wave of commerce growth. Whilst brands are actively managing more channels than ever before to remain relevant in an increasingly fragmented commerce landscape" Sperti said.  

Omnichannel ambition remains ahead of operational maturity  

Despite omnichannel and personalisation remaining dominant strategic priorities, the report found many organisations are still struggling to operationalise connected customer experiences across channels.  

While nearly all retailers see delivering seamless omnichannel experiences as strategically important, only 34.7% believe they have mature capability to deliver it.   

More than three quarters of retailers also rated their ability to deliver integrated fulfilment, returns and service experiences across channels as “developing at best”.   

Among brand manufacturers, fragmentation remains a major issue:  

• 86% say their organisation is still developing maturity in linking omnichannel vision to investment priorities  

• 70% are still developing maturity in delivering a consistent brand experience across channels  

• 63% say collaboration with retail partners remains under developed to deliver their omni-channel experience.    

The report found organisational silos continue to be a significant barrier to progress across both sectors.