Generational impacts on retail behaviour

Understanding the nuances of consumer behaviour across different generations is crucial for businesses aiming to stay competitive. Read this week's edition of BDO's insights to gain practical tips on how to optimise your retail strategy in 2025.

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Changing consumer behaviours in Australian retail

In response to the increasing changes and challenges facing retailers today, our retail experts collaborated with RetailOasis for our ‘Navigating Retail’ event, designed to help those working in the retail industry navigate these complexities.

The retail sector is undergoing a transformative phase, marked by significant challenges and unprecedented opportunities. We can already see how this generational shift is changing retail in Australia, especially when comparing two distinctly different segments: Gen Z and Baby Boomers.

Generational differences

Each generation, shaped by unique historical, social, and economic factors, exhibits distinct purchasing patterns, preferences, and brand loyalty.

• Baby Boomers: Despite their declining numbers, Baby Boomers still hold significant economic power. They are quickly adopting online shopping and have the highest basket size online. Their spending focuses on hobbies, travel, art, home improvement, and health and wellness.
• Gen Z: Expected to be the largest generation by 2027, Gen Z is the first truly digital native generation. They value convenience, such as free same-day delivery, and are highly informed, often comparing prices online. However, they are also the hardest hit by the cost-of-living crisis, leading to reduced spending and a rise in 'dupe culture' (buying knockoffs). Loyalty is a challenge with this group, as they are willing to explore new brands but are hard to retain.

Optimise your strategy

Businesses must tailor their strategies to meet the diverse needs and expectations of these generational segments. For Baby Boomers, focusing on loyalty programs and high-quality customer service can be beneficial. For Gen Z, offering convenience, sustainability, and engaging through influencers can drive engagement.

Future outlook

The generational shift will continue to shape the retail landscape. By 2027, Gen Z will overtake Millennials as the leading generation in Australia. Retailers need to stay agile and adapt to these changes to thrive in the evolving market.

?? For a deeper understanding of the challenges and effects of this generational shift, read the full article.

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Upcoming events and webinars

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IFRS & Corporate Reporting series: New IFRS 18 "Presentation and Disclosure in Financial Statements"

Wednesday 11 December, 11:00am - 12:00pm AEDT

Earlier this year, the International Accounting Standards Board (IASB) published IFRS? 18 Presentation and Disclosure in Financial Statements, which replaces IAS 1 Presentation of Financial Statements as the primary source of requirements for financial statement presentation. Join our experts as they discuss the key changes and implications for your organisation’s financial reporting.

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Sustainability webinar series: Climate-related disclosures in Australia

Wednesday 18 December, 11:00am - 12:00pm AEDT

It’s official: Australia’s mandatory climate reporting starts 1 January 2025. In our final sustainability webinar of the year, join Aletta Boshoff and Kevin Frohbus as they summarise the essential developments in legislation and sustainability reporting standards from the past 12 months. Find out what climate-related disclosures are required for your organisation.

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