Australia's top retailers posted $5.2 billion profit; AI shopping tools years away from full automation
Major Australian retailers reported a combined profit exceeding $5 billion last year, driven primarily by cost management and rising online sales rather than increased consumer spending.
Australia's largest retailers delivered a combined profit of more than $5 billion in their last financial year. Earnings growth resulted from cost reductions instead of customers spending more, according to Trent Rigby, director of Retail Customer Advisory. During annual presentations, companies like Woolworths and Bunnings emphasized 'agentic commerce'—allowing AI programs to shop for users—as a primary investment area. Amanda Bardwell, Woolworths CEO, stated that its digital assistant has evolved into a personal shopping companion. However, experts warn such advanced AI tools will not become standard practice for years. Coles plans further investment in conversational shopping despite not yet launching its own chatbot. Online sales drove significant revenue growth; Coles' orders rose 26.4% to reach $5.6 billion, while Woolworths saw online orders grow by 18% to nearly $11 billion. Gary Mortimer from the Queensland University of Technology estimates one in three purchases could soon be made online.
