The Australia home shopping market size reached USD 65.50 Billion in 2024. The market is expected to grow at a CAGR of 11.10% between 2025 and 2034, reaching USD 187.66 Billion by 2034.

Online shopping has become a way of life. Once considered a novelty, much like the internet itself, the online shopping phenomenon has surpassed business and consumer expectations. It has evolved and expanded rapidly, with escalating internet and broadband uptake and changing consumer attitudes helping online shopping become a mainstream retail avenue. Greater investment in online platforms to advance website navigation, enhance security and improve delivery is fuelling a shift in consumer buying habits towards online shopping. The pandemic brought retail trading in Australia to a standstill, with lockdown periods and restrictions leading to a surge in online shopping sales. As consumers jumped online at breakneck speed, the online market was flooded with new entrants and businesses ramped up their digital sales capabilities to keep up with demand. Despite the hype and surge in sales, challenging trading conditions in the post-pandemic environment have eroded some of the earlier gains. Strong inflation and rising interest rates have combined to create a cost-of-living crisis, with consumers reassessing their online spending habits in the face of tightening purse strings. Nonetheless, revenue is anticipated to have grown at an annualised 7.4% over the five years through 2024-25 and is expected to total $58.0 billion in the current year, when revenue is set to climb by an estimated 5.2%. Going forwards, online shopping revenue is forecast to climb at an annualised 6.5% through the end of 2029-30 to total a projected $79.4 billion, aided by continued consumer demand. Greater digital connectivity will allow consumers to shop anywhere and anytime, with advances in augmented reality opening new doors for online retailers. Strong revenue prospects will entice more bricks-and-mortar retailers to launch online stores to complement their physical store network, while many online retailers will open shopfronts and flagship stores, blurring the lines between the two. Escalating competition, particularly from international low-cost retailers like Temu and Shein, will limit growth in profitability.

The Australian e-commerce market is experiencing robust growth, driven by increasing internet penetration, smartphone adoption, and a shift in consumer preferences towards online shopping convenience. With a CAGR of 13.70%, the market exhibits significant potential for expansion. The B2C segment, encompassing diverse sectors like beauty and personal care, consumer electronics, fashion and apparel, food and beverages, furniture and home, and others, dominates the overall market share. While precise market size figures for 2025 are unavailable, extrapolating from the provided CAGR and assuming a 2024 market size of approximately $50 Billion (a reasonable estimate given global trends and Australia's economy), the 2025 market size is estimated to be around $56.85 Billion. This growth is further fueled by the rise of mobile commerce and the increasing adoption of digital payment methods. Key players like Amazon, eBay, Kogan, and major retailers such as Woolworths and Coles are aggressively competing to capture market share, leading to intense innovation in logistics, customer service, and personalized shopping experiences. The B2B e-commerce segment, although smaller than B2C, is also demonstrating considerable growth, fueled by the increasing adoption of digital procurement solutions by businesses across various sectors. This segment is expected to benefit from improvements in supply chain management and digitalization efforts by businesses. However, challenges remain, including concerns around cybersecurity, data privacy, and maintaining a competitive edge in a rapidly evolving technological landscape. The ongoing expansion of high-speed internet access in regional areas and government initiatives aimed at supporting digital businesses will continue to propel the market's growth in the coming years. This indicates a promising outlook for investors and businesses looking to capitalize on the burgeoning Australian e-commerce sector. Continued innovation in areas like augmented reality and personalized recommendations are expected to further enhance the shopping experience and drive further market expansion. Recent developments include: April 2022 - Pinterest announced a strategic partnership with the E-commerce platform WooCommerce, which will enable WooCommerce's 3.6 million merchants the convert their product catalogs into Shoppable Pins on Pinterest. with this partnership, a new Pinterest app within WooCommerce would be launched, which will include various Pinterest shopping features such as tag deployment and catalog ingestion., May 2022 - Marketplacer announced the completion of a new holistic online marketplace for True Woo, offering a range of products and services targeted at individuals seeking ways to improve their wellbeing. The E-commerce platform says the marketplace it has created for True Woo features products and services designed to improve mental, emotional, physical, and spiritual health.. Key drivers for this market are: Rise in Purchase Frequency and Online Spending, Rising Adoption of Click and Collect Services. Potential restraints include: Rise in Purchase Frequency and Online Spending, Rising Adoption of Click and Collect Services. Notable trends are: Rise in Purchase Frequency and Online Spending.

Australia's online retail spending rose across all segments for both domestic and international merchants in February 2025 compared to the year prior. In the grocery and liquor category, online retail expenditure to domestic merchants increased by around *** percent compared to the previous year. In comparison, international merchants in this category experienced a rise of **** percent. Leading online retailers and marketplaces As of 2024, Amazon and eBay were the top online retailers and marketplaces across Australia, with more than ** percent of online shoppers purchasing from Amazon and over ** percent from eBay that year. Both websites attract millions of monthly site visits, with eBay at around **** million visits per month as of February 2025. Australia’s supermarket giants, Woolworths and Coles, were also among the top online stores purchased from across the country, with Woolworths Group holding the largest share of Australia’s grocery retail market. Discount department stores Kmart and BIG W were also among the leading online retailers; nonetheless, department store chains have started to lose ground to online marketplaces such as Amazon, eBay, and Temu. Unsurprisingly, books and e-books were Amazon Australia’s most popular purchase categories, largely due to the popularity of Kindle and Audible, as well as the site often offering paperback books at lower prices compared to chain or independent bookstores. Online retail trends In 2020 and 2021, widespread restrictions to in-store shopping across Australia resulting from the COVID-19 pandemic drove many consumers to online shopping channels. Consequently, the country’s e-commerce market boomed during that period, with e-commerce growing by over **** percent in 2020 and 2021. Market growth slowed somewhat in 2022; nevertheless, long-lasting changes to consumer behavior are noticeable, with many shoppers engaging in omnichannel shopping activities. Shopping smart is becoming essential in current times, as inflation affects household disposable income, with consumers increasingly conducting in-depth research before purchasing, shopping during sales periods, bulk buying, and purchasing items, such as birthday or Christmas gifts, in advance. Furthermore, in recent years, product sustainability has come into greater focus across Australia, with many online shoppers preferring to purchase from ethical and sustainable brands.

A survey conducted in the 12 months to July 2025 revealed that the most prevalent online retailer purchased from among Australian online shoppers was U.S. marketplace Amazon, with around ** percent of respondents reportedly purchasing from this shopping site in the past 12 months. Coles and BIG W followed at ** percent of surveyed online consumers, respectively. eBay fell in the ranking, with around ** percent of those surveyed shopping from the site that year. Online marketplaces are flourishing Online marketplaces in Australia have become increasingly popular in recent years. Australian consumers have been attracted to this retail format due to their wide range of products, convenience of use, and affordable prices. The dominance of global marketplaces, such as Amazon, is evident, with the brand appreciated by Australia’s shoppers due to advantages such as fast delivery, ease of purchase, and good quality products. However, it is worth noting that local Australian retailers have also made their mark, with discount department store chain Kmart and grocery giant Woolworths remaining popular among online shoppers. The continued growth of the e-commerce industry, consumer preference for convenient and diverse shopping options, and new market entrants like Temu help marketplaces remain a vital component of the Australian retail industry. Online retail industry trends The COVID-19 pandemic led to extensive limitations to Australia's in-store shopping in 2020 and 2021. As a result, the e-commerce market experienced significant expansion during this period, with an e-commerce growth rate of about **** percent in 2020 and around ** percent in 2021. Conversely, in 2022 and 2023, market growth slowed. Nonetheless, there were still observable, long-lasting changes to consumer behavior, as evidenced by the considerable number of customers who now actively engage in online buying activities. According to a July 2024 survey, about ** percent of Australians made at least one online purchase per week, while ** percent of internet shoppers made an online purchase at least once per month. As the market develops, it is expected that both domestic and foreign retailers will compete for a larger share of the growing online retail market in Australia.

Australian Retail Market size was valued at USD 245 Billion in 2024 and is projected to reach USD 375 Billion by 2032, growing at a CAGR of 4.2% from 2025 to 2032.

Australian Retail Market: Definition/Overview

The Australian retail market is defined as the sector encompassing all business-to-consumer (B2C) sales of goods and services through various channels including physical stores, online platforms, and omnichannel retail formats. The market structure is characterized by a mix of large retail chains, independent retailers, and emerging digital platforms.

Furthermore, the retail landscape is shaped by factors such as urbanization, digital transformation, and changing consumer behavior patterns. The integration of technologies such as artificial intelligence, data analytics, and automated checkout systems is implemented to enhance customer experience.

Houseware retailers have come up against tough trading conditions over the past five years. Pandemic-induced lockdowns led to an early surge in houseware sales, with the increased time consumers spent at home sparking renewed interest in cooking and baking. Yet the pandemic had a dual effect, with restrictions and a backlog in building material availability leading to a slump in residential construction activity. With fewer new homes needing housewares, retailers had to rely largely on the replacement market to post a sale. Post-pandemic, the trading environment for houseware retailers has remained volatile. Strong inflation and rising interest rates have been eroding consumers’ willingness to spend on non-essential goods like housewares. As a result, industry revenue is expected to have dropped at an annualised 1.0% over the past five years to $2.2 billion in 2024-25, when revenue is anticipated to sink 6.4%. Competition across the housewares market has heated up over the past five years, with the entry of more retailers driving an upswing in enterprise numbers. Houseware retailers have also felt the pinch from supermarkets and department stores adding budget housewares to their traditional product mix, encroaching on the housewares market. Online shopping has also become increasingly prevalent, and this has compelled houseware retailers to invest more in their ecommerce platforms, including websites and mobile apps, to enhance their online performance and boost sales. Going forwards, a resurgence in residential building construction activity is set to ignite demand for housewares from new homeowners. Improving economic conditions will bring about a hike in the population, fuelling an upturn in household numbers and higher average weekly earnings. Consumers will have greater discretionary income, and continued recoveries in consumer sentiment will fuel a healthier spending appetite. Revenue across the Houseware Retailing industry is forecast to grow at an annualised 1.1% over the five years through 2029-30 to total $2.4 billion. Yet it won't be all smooth sailing, with escalating competition set to lead to a weak climb in industry profitability.

In a survey conducted in July 2022 among online shoppers in Australia, half of respondents favored purchasing a product from an international retailer or brand over a domestic retailer because the product they wanted to purchase was more affordable outside of their domestic market. Around ** percent of those surveyed also chose to buy outside of their domestic market as they found an international brand offering low shipping costs.

Online household furniture retailers have had much to celebrate thanks to shifts in consumer habits towards online shopping. Trends in internet subscriber numbers, greater online connectivity and enhanced online platforms have made online shopping more accessible for consumers. At the same time, improvements to website usability and transaction security have increased its appeal. The ability to compare products, offers of lower prices and competitive delivery costs have been added bonuses for consumers in the new furniture market, driving widespread acceptance. All in all, industry revenue is anticipated to grow at an annualised 5.7% over the five years through 2024-25 and is expected to total $1.5 billion in the current year when revenue is set to expand by an estimated 3.8%. Online household furniture orders surged during the pandemic as lockdown periods and trading restrictions caused consumers to shop online in droves. Pandemic restrictions fuelled spending on home improvements, which, in turn, led to a spike in sales of bedroom, lounge and outdoor furniture. Despite the hype, online household furniture retailers have struggled in the post-pandemic environment, with rising inflation and higher interest rates leading to a cost-of-living crisis. While purchase costs have climbed due to rising input prices and inflated freight costs, profitability has expanded, largely owing to earlier gains. Going forwards, online shopping's flourishing popularity is set to underpin continued online household furniture sales. With internet subscriber numbers as a foundation, shifts towards online shopping will also benefit from enhanced online connectivity and data-driven platforms. Traditional bricks-and-mortar retailers will continue to make their foray into online shopping, growing the industry's enterprise and establishment base and heightening competition. Sales are also likely to stem from an upswing in residential building construction, with more homes creating a need for more furniture. Industry revenue is forecast to grow at an annualised 3.5% over the five years through 2029-30 to total $1.8 billion.

In a 2022 survey conducted among Australian online shoppers, the leading product category shoppers would consider purchasing from outside of their domestic market was clothing, shoes, and accessories, with around ** percent of respondents indicating this. Around ** percent of those surveyed indicated that they would consider buying health and beauty products cross-border.

Increasing internet penetration and smartphone adoption in Australia have been significantly enhancing access to online shopping platforms. According to the analyst from Verified Market Research, the Australia E-commerce Market, estimated to be worth USD 57.11 Billion in 2024 and likely to grow to USD 91.05 Billion by 2032.The rapid expansion of the Australia e-commerce market is primarily driven by rising consumer preferences for convenience, supported by advancements in payment systems and logistics infrastructure. It enables the market to grow at a CAGR of 6.20% from 2026 to 2032.

In 2024, the annual revenue of the household goods retail industry in Australia amounted to around 70.4 billion Australian dollars. Between 2005 and 2022, the country's household goods retail revenue had been steadily growing year-on-year, with 2023 marking the first decline within the given period.

In 2015, the retail e-commerce share of all retail sales in Australia was *** percent. By 2019, this share was forecasted to increase to *** percent. In 2018, the digital buyer penetration was forecasted to reach ** percent, continuing a year-on-year increase from 2013. Consumers aged between ** to ** are the most active in the e-commerce market in the country.

E-commerce market

The net e-commerce sales of Woolworths topped the online B2C market in Australia in 2018. Coles, another Australian supermarket chain, trailed behind with the second highest online sales. Both Coles and Woolworth shoppers were equally willing to buy groceries online in this year. In terms of the electronics and media segment, Apple led the pack with net online sales amounting to almost *** million U.S. dollars.

Market growth

In 2017, domestic media retailers experienced the largest growth, over ** percent, for retail e-commerce sales in Australia. The number of Amazon sellers in Australia had increased over four-fold from the beginning of 2018 to August of the same year. For international retailers, department stores had the highest online sales growth. Online stores such as ASOS and The Iconic dominated the fashion segment in Australia in 2018, and look set to continue their growth in the future.

The Online Baby Product Sales industry has defied Australia's turbulent retail landscape over the past five years, expanding rapidly over the period. The industry owes its success to technological advances and increasing internet connectivity, which have fuelled demand for – and acceptance of – online shopping in Australia. Strong marketing campaigns, competitive pricing and the development of multichannel retailing options have also enhanced the appeal of online baby product retailers. Competitive pricing and convenient shopping platforms have caused sales volumes to soar. The industry has bolstered its consumer appeal by using clever marketing and low prices – particularly for essential items like nappies and baby food – to win over an increasingly value-conscious customer base. Online retailers have also benefited from offering consumers a convenient way to shop, through mobile shopping apps that allow customers to purchase baby products anytime and from many locations. The growing prevalence of remote and hybrid work arrangements has fuelled this trend. However, competition has intensified, squeezing retailers' profit margins as they fight to offer customers the most attractive deals and discounts. Revenue is expected to increase at an annualised 5.7% over the five years through 2024-25, to $1.6 billion. This includes an expected dip of 0.4% in 2024-25, as cost of living pressures force consumers to reduce spending on pricey baby products.Greater acceptance of online shopping platforms will fuel demand over the next few years. In the face of escalating competition, online baby product retailers' revenue growth will lean on premium and niche products. As prominent players intensify price-based competition through robust online presence, smaller retailers will pivot towards niche offerings like branded baby clothing and eco-friendly products. Online retailers are also poised to focus on membership programmes to foster customer loyalty and expand market share. An uptick in birth rates, improving consumer sentiment and household disposable income growth will underpin industry expansion. As the economic recovery continues, the consumption of high-end baby products is forecast to swell, supporting profit margins. Overall, revenue is forecast to rise at an annualised 2.9% over the five years through 2029-30, to $1.7 billion.

Australia Retail Market is Segmented by Product Category (Food and Beverage, Personal and Household Care, and More), by Retail Format (Supermarkets and Hypermarkets, Convenience Stores, and More), by Distribution Channel (Offline Retailing, Online Retailing, and More), by Payment Mode (Cards and EFTPOS, and More), and by State (New South Wales, Victoria, and More). The Market Forecasts are Provided in Terms of Value (USD).

In May 2025, the monthly online retail revenue generated in Australia amounted to just over 4.49 billion Australian dollars. This surpassed the previous peak of around 4.52 billion Australian dollars in online retail revenue recorded in April 2025. Online retailing in Australia To draw customers back into physical stores after the COVID-19 pandemic, Australian retailers are placing a strong emphasis on creating seamless shopping experiences that combine online and in-store channels. Nevertheless, online shopping remains a crucial element of the retail sector in Australia. In February 2025, Australia's online retail spending increased for both domestic and international merchants across all categories when compared to the previous year. Several Australian households made weekly online purchases, indicating the rising reliance on e-commerce in daily life. According to around 68 percent of Australian participants in a 2024 survey, convenience was the primary reason for their online purchases. Australia’s leading e-commerce platforms The e-commerce market in Australia is shaped by both global giants and well-known local companies that cater to a wide variety of customer needs. In the year preceding July 2024, a survey revealed that Australian customers' preferred online retailer or marketplace was the U.S.-based marketplace Amazon, from which around 54 percent of participants had made purchases. Australian retailers Kmart and Woolworths came in joint third after eBay, drawing in 40 percent of online buyers, respectively. Chinese online platform Temu has also seen a rise in popularity in recent years due to its heavily discounted products, with the Temu shopping app being Australia's most downloaded online marketplace app in 2024.

The retail landscape has undergone a substantial digital transformation over the past few years due to the COVID-19 pandemic, which is why the Online Consumer Electronics Sales industry has flourished. Increasing acceptance of online shopping has sustained robust industry growth. Online retailers’ ability to provide products at lower pricepoints than traditional consumer electronics retailers has enabled the industry to better withstand poor economic conditions. Online computer electronic product purchases are considered a cost-effective alternative to purchasing from traditional bricks-and-mortar stores. Yet, weakening consumer sentiment and the cost-of-living crisis have partly restricted consumer demand and expenditure on industry products recently. Falling real household discretionary income has encouraged more bargain seekers and propelled sales of versatile electronics like mobile phones instead of big-ticket items like home entertainment products, boosting industry revenue. Industry revenue is set to climb at an annualised 5.9% over the few years through the end of 2024-25, to $4.5 billion. This trend includes anticipated growth of 1.7% through the end of 2024-25; a more modest result than previous years as consumers become more price-conscious. Retailers have benefited from significant technological change, driving revenue growth. Continued innovation among electronic devices has supported demand. Alongside intense price-based competition, online retailers’ lower operating costs compared to traditional bricks-and-mortar retailers have ensured cost savings for consumers but have diminished operators’ profit as a share of revenue. A rise in industry revenue has prompted traditional retailers like JB Hi-Fi to invest heavily in their online sales channels, boosting their market share. Online-focused retailers like Amazon have invested more in distribution efficiency, resulting in a rapid growth in market share. Overall, revenue is set to rise by an annualised 5.6% over the coming years through the end of 2029-30, to $5.9 billion. Industry participation is set to dip due to more intense price wars, with unprofitable, small-scale retailers exiting the industry. Improved data connectivity and continuous product innovation are poised to facilitate demand for consumer electronics that capitalise on increased data speeds as consumers update their existing hardware. Higher sales volumes of modern technology will likely boost industry profitability.

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Home Decor Market Size 2025-2029

The home decor market size is forecast to increase by USD 470.5 million, at a CAGR of 9.5% between 2024 and 2029.

The market is experiencing significant growth driven by rising disposable income among consumers worldwide. This trend is fueling increased demand for home decor items, particularly those that reflect personal style and enhance living spaces. A notable shift towards eco-friendly and sustainable home decor is emerging as consumers become more environmentally conscious. However, market dynamics are complex, with challenges arising from the volatility of raw material prices and transportation costs. These fluctuations can impact the profitability of home decor businesses, necessitating effective supply chain management strategies. To capitalize on opportunities and navigate challenges, companies must stay informed of consumer preferences and market trends while implementing cost-effective sourcing and logistics solutions. Adapting to these market conditions requires agility and strategic planning, ensuring long-term success in the evolving home decor landscape.

What will be the Size of the Home Decor Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, with dynamic trends unfolding across various sectors. Decorative throws and textile designs add warmth and comfort to modern minimalist and Scandinavian style interiors, while voice assistants facilitate hands-free control of smart lighting and home automation systems. Accent furniture and vintage pieces add character to industrial and mid-century modern spaces. Home fragrances and ceramic vases enhance the sensory experience, complementing the color palettes of personalized home decor. Retail channels, including online marketplaces, offer budget-friendly options for consumers, while e-commerce platforms enable seamless purchasing experiences. Supply chain management and ethical sourcing initiatives ensure quality control in manufacturing processes. Home staging and renovation trends prioritize sustainability and eco-friendly materials. Consumer behavior influences the demand for smart thermostats, home security systems, and DIY home decor projects. Brand awareness and product differentiation drive innovation in wall art, wall hangings, and bedding sets. Home improvement projects incorporate smart home devices and outdoor furniture, expanding the scope of home decor. The ongoing evolution of market dynamics continues to shape the industry, with each sector interconnected and influencing the next.

How is this Home Decor Industry segmented?

The home decor industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductFurnitureFloor coveringsOthersDistribution ChannelOfflineOnlinePriceMassPremiumApplicationIndoorOutdoorEnd-User TypeResidentialCommercialHospitalityMaterial TypeWoodMetalGlassFabricPlasticGeographyNorth AmericaUSCanadaEuropeFranceGermanyUKAPACAustraliaChinaIndiaJapanSouth KoreaRest of World (ROW)

By Product Insights

The furniture segment is estimated to witness significant growth during the forecast period.In the realm of home decor, consumers are drawn to an array of offerings beyond mere functionality. From sheer curtains to picture frames, window treatments, and home automation systems, the market encompasses a diverse range of products. The distribution networks for these items have expanded significantly, with online marketplaces playing a pivotal role in reaching a broader customer base. Modern minimalism, scandinavian style, and bohemian aesthetics continue to influence design trends. Area rugs, bedding sets, and decorative pillows cater to these preferences, with personalized options adding a unique touch. Luxury home decor, such as high-end lighting fixtures and wall art, is in high demand among affluent consumers. Manufacturing processes have evolved to prioritize sustainability initiatives, with ethical sourcing and eco-friendly materials gaining traction. Mid-century modern and industrial styles have resurfaced, while color palettes shift to accommodate consumer preferences. Home automation and smart devices, including voice assistants, smart lighting, and smart thermostats, have become integral to modern living. Home staging, renovation trends, and DIY home decor projects further fuel market growth. Customer demographics span across generations, with baby boomers, millennials, and Gen Z each having distinct preferences. Pricing strategies vary, with budget-friendly options catering to cost-conscious consumers. Textile designs, e-commerce platforms, and retail channels have adapted to accommodate these trend

Australia’s online sporting and physical recreation goods retailing industry has navigated a period of significant change. Recent data from the NAB Online Retail Sales Index shows that spending on personal and recreational goods, including sporting and recreation products, edged up 0.2% in April 2025, with annual sales capturing 11.8% of total online sales. Much of this momentum has stemmed from the convenience and breadth of online shopping, where consumers enjoy competitive pricing, easy returns and the flexibility to browse from home. Enhanced digital platforms, wider product ranges and the integration of click-and-collect options have narrowed the gap between online and instore experiences. Retailers have also leveraged social media, with brands like Rebel and BCF driving engagement through digital campaigns that blend community-building with savvy marketing. Overall, industry revenue has been growing at an annualised 6.3% over the past five years and is expected to total $1.1 billion in 2024-25, when revenue will climb by an estimated 5.7%. The industry’s performance has been a mixed bag. While shifting shopping preferences and greater internet connectivity have supported online sales growth, challenging economic conditions, marked by strong inflation, high interest rates and volatile consumer sentiment, have created headwinds. Key industry retailers with omnichannel strategies, like Rebel and Anaconda, have leveraged their brand strength and store networks to dominate, while online-only retailers have struggled to stand out amid fierce price competition and rising supplier costs. Meanwhile, surges in activities like camping, bushwalking and home fitness have sparked bursts of demand for specific categories. Going forwards, easing inflation and lower interest rates are tipped to unlock pent-up consumer demand, while population growth and increasing internet penetration set the stage for a wider customer base. Upcoming major sporting events, from the AFC Women’s Asian Cup to the Brisbane 2032 Olympics, are set to inspire the nation and drive higher participation, fuelling demand for related goods. At the same time, rapid advances in technology, from AI-driven recommendations to AR/VR-enabled shopping, will continue to redefine the online experience. More retailers will invest in omnichannel offerings and embrace new delivery and engagement models. However, the industry’s intensifying competition will keep a lid on profit margins, even as volumes and sales climb. Industry revenue is forecast to grow at an annualised 6.3% over the five years through 2029-30 to total $1.5 billion.

The Domestic Appliance Retailing industry has faced fierce competition from pure-play retailers and department stores. Department stores have expanded their domestic appliance product range to compete with traditional retailers, while online sellers have appealed to consumers with their ability to offer competitive prices and convenience. Cost-of-living pressures and high interest rates have encouraged bargain-hunting behaviour among Australians, weighing on retailers' pricing power and profitability. This challenging trading environment has promoted industry consolidation, and smaller retailers have adopted more part-time workers to replace expensive full-time staff. Larger retailers have engaged in mergers and acquisitions, as seen in JB Hi-Fi’s acquisition of E&S Trading in August 2024. Overall, industry revenue is expected to decline at an annualised 1.2% over the five years through 2024-25 to $17.3 billion. This includes an anticipated 2.4% uptick in 2024-25 as discretionary spending rises amid easing inflationary pressures and demand from residential housing construction creeps upwards thanks to favourable policies supporting affordable housing. To combat fierce competition, large retailers are increasingly embracing omnichannel strategies to diversify revenue streams and maximise customer value. Online channels, including websites and live chat, are making up an expanding proportion of larger retailers' revenue, highlighting the importance of this selling channel. Despite the booming popularity of online shopping, many consumers prefer to purchase appliances like whitegoods and TVs in person, which is why retailers have invested in staff training to enhance the customer experience. Aggressive discounting strategies are also becoming commonplace, with larger retailers splurging on promotional campaigns and offering hefty discounts during events like Black Friday and Boxing Day at the cost of their gross margins. Over the coming years, continued advances in product design and technology, a rise in the number of households, improvements in discretionary income and recovering consumer sentiment will underpin growth. A rebound in residential building construction activity, spurred by higher net migration levels and the $10.0 billion Housing Australia Future Fund, will keep demand for whitegoods and TVs elevated, but the saturation of online shopping will keep demand woes alive. Large retailers will stock more advanced technological products from upstream manufacturers to expand their online revenue stream. They will capitalise on membership programs and data analytics to enhance their market positions in the coming years. Industry revenue is forecast to rise at an annualised 1.9% over the five years through 2029-30 to $19.0 billion.