Australian consumers expect to increase their spending over the Black Friday Cyber Monday (BFCM) period this year, although cost-of-living pressures are influencing how they research products and make purchasing decisions, new research from Shopify has found.
According to Shopify’s 2026 Holiday Retail Report, Australians expect to spend an average A$346 during BFCM, compared with A$324 in 2025. This contrasts with global spending expectations, which have declined from US$192 to US$186.
Despite the anticipated increase, 54% of Australian respondents said economic conditions had negatively affected their holiday shopping plans.
The findings also suggest consumers are taking more time to assess their options before purchasing. In Australia, 85% said they would prefer to wait for a suitable product rather than purchase the most convenient option, compared with 79% of shoppers globally.
For retailers, this places greater importance on communicating product quality, relevance and value alongside seasonal promotions.
“Australians are still willing to spend this holiday season, but they’re putting more work into deciding what’s worth their money,” said James Johnson, Head of Enterprise ANZ at Shopify. “They’re researching, weighing up more options and increasingly using AI to help them find products that fit what they’re looking for.
“For retailers, that raises the bar. This BFCM isn’t just about offering the deepest discount; it’s about making your products easy to discover, clear to understand, and worth choosing. The businesses that get those fundamentals right can give shoppers greater confidence in what they’re buying, wherever that discovery starts.”
AI plays a growing role in product discovery
Artificial intelligence is becoming another tool consumers use to compare products, identify discounts and explore potential purchases.
The research found 62% of Australians expect to use AI for at least one holiday shopping activity, including searching for deals, finding products and gathering gift ideas.
Adoption is particularly strong among younger consumers, with 70% of Australians aged 25–34 using AI at least occasionally when shopping, compared with 45% of Australian shoppers overall.
However, consumers appear more comfortable using AI for assistance than allowing it to complete transactions independently. While 41% are comfortable with AI assembling their shopping cart, only 29% trust the technology to purchase products on their behalf.
“This peak season will be an important test of how AI fits into the way Australians shop,” said Fleur Brown, Chief Industry Engagement Officer at the Australian Retail Council. “As more shoppers use these tools to compare products, discover new options and look for better value, trust will be critical. Retailers have an opportunity to use AI to make shopping easier and more relevant, but the fundamentals don’t change; customers still need to feel confident that they’re getting genuine value and making the right choice.”
Retailers are also adapting their digital strategies, with 51% investing in AI-generated content, 46% in virtual assistants and 45% in making their online stores more accessible to AI-powered discovery and recommendation tools.
Australian fashion retailer Princess Polly is among the businesses preparing for changes in customer search behaviour ahead of the promotional period.
“We’re seeing shoppers plan earlier every year. Our customers build their wishlists well in advance so they’re ready the moment offers go live,” said Destiny Flaherty, Head of SEO at Princess Polly. “To capture attention, we’re focused on getting the fundamentals right: competitive offers, clear and simple messaging, and a product selection that reflects what our customer actually wants to wear this season.”
“In terms of AI, search is moving from keywords to conversations, so we’ve built a dedicated AEO (answer engine optimisation) roadmap around that shift. It starts with our product data. Our customers expect the latest styles that genuinely match what they’re looking for, so we’re making sure every product carries the rich, accurate attributes and descriptions AI platforms need to surface it in the right context.”
Product quality influences perceptions of value
The report also examined how Australians assess value when shopping, finding that price alone is not necessarily the deciding factor.
More than half (57%) of respondents associated good value with receiving better quality than expected for the amount paid.
Purchasing behaviour also reflects a willingness to delay transactions in anticipation of better offers. Almost one-quarter (24%) of Australians said they add items to their online carts and wait for prices to decrease before completing their purchase.
These findings indicate that while discounts remain an important part of BFCM promotions, retailers also need to provide sufficient product information and demonstrate the benefits of their offerings.
AI shoppers show greater interest in independent brands
The research also identified increasing interest in smaller and specialist retailers, with 54% of Australians reporting that they are purchasing from independent or niche brands more frequently than in 2025.
This trend was particularly evident among respondents who regularly use AI when shopping. Among Australians who almost always use AI during the purchasing process, 80% said they were buying from independent or niche brands more often, compared with 40% of those who do not use AI for shopping.
Additionally, 15% of Australian respondents said AI had introduced them to a brand they were previously unfamiliar with.
Although the research does not demonstrate a direct causal relationship between AI adoption and purchasing from independent retailers, it indicates that frequent AI users may be more receptive to exploring unfamiliar brands.
As the BFCM period approaches, the findings suggest Australian retailers will need to respond to consumers who are prepared to spend but are increasingly selective about their purchases.
With AI becoming another channel for product discovery, accurate product information, competitive pricing and clear communication of value are likely to remain important factors in attracting shoppers and converting interest into sales.
