Merchandising in 2025: Retail Strategies for Australian Success

Merchandising has long been at the heart of retail, but in 2025, the game has changed for Australian businesses. With evolving consumer habits, sustainability concerns, and rapid digital transformation, retailers must adopt innovative strategies to stay ahead. Let’s dive into the new era of merchandising—where data, design, and customer experience intersect to drive sales and loyalty.

Merchandising in 2025: What’s Changed?

Australian retail has undergone seismic shifts over the past few years. The pandemic accelerated e-commerce adoption, while consumers’ expectations for seamless, personalised experiences have never been higher. In 2025, successful merchandising is less about shelf-stacking and more about strategic product curation, omnichannel presentation, and data-driven decision-making.

• Omnichannel Integration: Customers expect a consistent experience online and in-store. Merchandising now spans digital storefronts, physical displays, and hybrid concepts like click-and-collect zones.

• Personalisation: Using customer data, retailers curate recommendations, bundle offers, and even tailor in-store layouts for local preferences.

• Sustainability Focus: Eco-conscious merchandising, such as refill stations and minimal packaging, is both a marketing tool and a consumer demand.

For example, major chains like Coles and Woolworths have introduced AI-driven planograms that adjust displays based on local demand and real-time sales data.

Key Merchandising Strategies Driving Results

To stand out in 2025, Australian retailers are deploying a blend of technology, creativity, and responsiveness. Here are the top approaches making an impact:

• Data-Driven Visual Merchandising: Real-time analytics inform not just what to stock, but where to place it. Heatmaps show where shoppers linger, and dynamic displays adapt to trending products or weather changes.

• Storytelling Displays: Retailers use themed displays and interactive elements (like AR mirrors or QR-linked demos) to engage shoppers and boost dwell time.

• Sustainable Merchandising: From upcycled store fixtures to plastic-free packaging, retailers showcase their values while meeting regulatory targets set by Australia’s 2025 National Packaging Targets.

• Localisation: Merchandising is tailored to local tastes, supporting Australian producers and seasonal events. Independent grocers, for instance, highlight local suppliers and Indigenous brands.

Smaller retailers are also leveraging social media trends—such as TikTok-inspired displays—to create Instagrammable moments that drive both foot traffic and online buzz.

Financial Impact and Policy Drivers

Effective merchandising isn’t just about aesthetics—it’s a critical lever for profitability. In 2025, the financial benefits are amplified by:

• Increased Basket Size: Smarter product placement and bundling strategies have led to a 12% average increase in basket size for Australian retailers (ABS Retail Trade Report, 2025).

• Inventory Efficiency: AI-powered inventory management reduces overstock and markdowns, freeing up cash flow for growth.

• Regulatory Compliance: The Australian Government’s focus on sustainable packaging and waste reduction is pushing retailers to innovate in how products are presented and promoted.

For example, retailers complying with the new national ban on single-use plastics (phased in from July 2025) are merchandising reusable alternatives prominently, turning a regulatory challenge into a sales opportunity.

The Future of Merchandising: What’s Next?

Looking ahead, expect continued convergence of physical and digital retail, with technologies like RFID, mobile checkout, and augmented reality shaping how products are discovered and purchased. The most successful merchants will be those who put customer experience at the centre—using merchandising not just to sell, but to delight.