2025 Retail-ity Check

Digital innovation and customer experience are no longer optional.

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We’re going to deep dive into Aotearoa's shifting retail landscape and its demand for a complete rethink of customer engagement strategies.

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The numbers from NZ Post's 2025 eCommerce Market Sentiments Report reveal that while Kiwi shoppers spent over $6.1 billion online in 2024 (a 5% increase from the previous year) they're fundamentally changing how they shop. They're buying more frequently but spending less per transaction, hunting relentlessly for value, and increasingly looking offshore for better deals.

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For retailers, this is more than just a trend to watch, it's a wake-up call that demands action.

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The Value Equation
The report reveals that 46% of shoppers now prioritise discounts and special offers above everything else when choosing where to shop online. 63% of shoppers actively wait for sales before making purchases. This represents a fundamental shift to strategic deal-hunting.

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Meanwhile, international platforms like Temu have captured 38% of Kiwi shoppers who recently made overseas purchases (nearly three times more than from Amazon). The message is clear… New Zealand retailers are fiercely competing not just locally, but globally.

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Digital Experience as a Competitive Differentiator
What the data also shows is that while price matters, it's not the only factor driving shopper decisions. The top reasons shoppers choose retailers include:

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• NZ-based business preference (29%) - Local connection still has value
• Order tracking visibility (26%) - Customers want transparency and control
• Easy/free returns (25%) - Reducing purchase risk is paramount
• Website experience (25%) - Seamless digital journeys matter

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This presents a crucial opportunity: retailers who can deliver superior digital experiences while maintaining competitive value can capture and retain customers even in a price-sensitive market.

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The Loyalty Paradox
Perhaps most interesting is the report's finding that 23% of shoppers actively seek frequency and loyalty rewards as a value-maximisation strategy. Yet many retailers are struggling to create loyalty programs that truly drive behaviour change rather than simply rewarding existing patterns.

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The disconnect lies in understanding that modern loyalty isn't about points and discounts - it's about creating personalised, convenient experiences that make customers feel valued throughout their entire journey.

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What This Means for Forward-Thinking Retailers
According to the report, successful retailers in 2024 focused on:

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• Improving customer experience (28%) -the top priority for 2025
• Finding new customers (25%) - expanding beyond existing audiences
• Website and technology improvements (24%) - investing in digital capability
• Growing sales from existing customers (23%) - deepening relationships

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Success comes from combining operational excellence with deep customer understanding and technological sophistication. More than just cutting costs or adding more promotions.

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The Omnichannel Imperative
The report highlights that shoppers move seamlessly between online and offline channels, with 64% browsing online before visiting stores, and 38% using mobile devices while shopping in-store. Yet 36% of online-only retailers still have no plans to respond to this omnichannel reality.

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This represents a massive competitive vulnerability. Customers expect integrated experiences, whether they're researching online, purchasing in-store, or seeking support across multiple touchpoints.

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Turning Insights Into Action
The retailers who will thrive in 2025 will be those who proactively build capabilities that address the underlying customer needs driving these behaviours. This means:

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• Reimagining loyalty programs to focus on experience and convenience, not just transactions
• Creating seamless omnichannel experiences that serve customers however and wherever they want to engage
• Leveraging technology to personalise interactions and anticipate customer needs
• Building operational excellence that delivers consistent, reliable experiences at every touchpoint
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The Path Forward
The data tells us that economic pressures have changed shopper behaviour, but the fundamentals of retail success remain constant: understand your customers deeply, deliver exceptional experiences, and create genuine value that goes beyond price competition.

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Customers' expectations will continue to evolve and businesses need to evolve at the same pace to meet them.

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Ready to transform your customer experience strategy?

The retailers succeeding in today's challenging environment need to be building systematic approaches to understanding, attracting, and retaining customers across every touchpoint.

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RUSH specialises in helping retailers navigate these challenges through integrated digital transformation and customer experience solutions. From omnichannel loyalty programs to seamless digital experiences, we help businesses turn customer insights into competitive advantages.

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