Online marketplaces seen intensifying competition in Australia: Deloitte

Expectations of more competition rose to 61% from 28% last year.

Online marketplaces are putting more pressure on Australian retailers, with 61% expecting the platforms to increase competition over the next 12 months, up from 28% last year, according to Deloitte.

Its 2026 Retail Report, based on a survey of 150 Australian retail executives and 1,000 consumers, found that 79% of retailers are concerned about competition from online marketplaces.

Consumers are also using the platforms as part of their shopping decisions. Some 48% said they often or always consider ultra-low-cost online marketplaces when shopping online, whilst 28% do so at least some of the time.

The trend extends across income groups. Amongst consumers earning $143,885 (AU$200,000) or more, 67% said they often or always consider ultra-low-cost marketplaces.

“These marketplaces are changing what shoppers expect from everyone, because price, range and convenience can now be compared in seconds,” said Deloitte Consumer Products & Retail Partner Damien Cork.

The report also found growing interest in artificial intelligence (AI)-assisted shopping.

Some 63% of consumers said they are willing to use AI to compare products and services, whilst 59% are willing to use it to find and apply discounts and 55% to negotiate or price-match.

Current use of AI-assisted shopping remains below consumers’ stated willingness to use it, according to Deloitte.

“Shoppers are adopting AI more gradually than some retailers expected, and many are still relying on familiar behaviours, whilst experimenting with emerging tools,” Cork said.

Retailers also face pressure from theft, fraud, organised crime and threatening customer behaviour. Some 37% reported sustained or increased shrinkage over the past 12 months.

More than a third of retailers, or 36%, are partnering with local law enforcement or retail crime networks, up from 23% last year.

“Retail crime is no longer simply a store-level issue,” said Deloitte Partner and Consumer Products & Retail Sector Lead Louise Heath. “It is increasingly impacting the cost base, employee safety, customer experience and, ultimately, margins.”

(US$1 = AU$1.39)