Aussie shoppers face a wave of price hikes as retailers battle rising costs

• 60% of retailers have increased their prices in the past year
• 37% have increased their prices by up to 10% in the past year
• 46% are planning more price increases in the next 12 months
  

Retailers are walking a tightrope between rising costs and shifting consumer expectations, as new data reveals 46 per cent of Australian businesses will increase prices in the next year, placing fresh pressure on household budgets.

The research, commissioned by CouriersPlease – Australia’s fastest-growing franchised courier and parcel delivery service – polled 203 retailers across Australia to gauge their pricing strategies amid inflation pressures. It found that 60 per cent of retailers have raised prices in the past 12 months, with 37 per cent increasing prices by up to 10 per cent, and 26 per cent by at least 20 per cent. With inflation still a concern, the price squeeze is expected to continue well into 2025, as almost half of businesses prepare for another round of increases.

Price hikes on the horizon

Despite the Reserve Bank of Australia (RBA) cutting the cash rate and forecasting inflation could hit the target 2-3 per cent range this year, many retailers remain under financial strain.[1] The survey found 23 per cent of retailers are planning a price increase of up to 10 per cent in the next 12 months, while 23 per cent anticipate more aggressive hikes of 20 per cent or more.

The survey also found that just a small percentage (12%) of retailers dropped their prices in the past year to stay competitive and in the next 12 months, and 45 per cent will hold prices steady.

Retail competition remains fierce

The findings come against a period of flat retail turnover that indicates consumer spending may be leveling.[2] The data suggests that many retailers may be trying to offset mounting operational costs, from shipping to wages, despite consumers exhibiting tighter spending patterns.

However, Aussie retailers aren’t just contending with economic pressures, they’re also up against global E-Commerce powerhouses such as Temu, Shein, and Amazon that continue to draw customers away from local businesses, while platforms like Etsy, eBay, and Shopify have made it easier than ever for micro-entrepreneurs to launch their own brands.[3] At the same time, resale commerce is booming, as budget-conscious and sustainability-driven consumers increasingly turn to second-hand platforms like Facebook Marketplace and Depop.[4]

Larger retailers lead price hikes

The survey also found larger retailers (50+ employees) were the most likely to increase prices, with 70 per doing so in the past year and 50 per cent signaling they plan to increase prices again in 2025. In contrast, micro retailers (1-10 employees) were more likely to decrease prices to stay competitive, though 46 per cent still raised prices.

South Australian and West Australian shoppers hit hardest

State-by-state data shows two-thirds of South Australian retailers (66%) increased prices last year, with 33 per cent doing so by more than 20 per cent. In Western Australia, 59 per cent plan to raise prices in 2025, above the national average of 45 per cent.

Richard adds that even as households benefit from marginal rate cuts, those savings may not translate at the checkout, given the extreme competition, rising operational costs, and ongoing global supply chain pressures.

What’s next for Aussie shoppers?

Survey results below:

Q1: With the inflation rate sitting above the RBA’s target, how much have you been forced to adjust your pricing strategy over the past year?

Q2: What is your pricing strategy in the next 12 months?

ENDS

About CouriersPlease

CouriersPlease is Australia’s fastest growing franchised courier and parcel delivery service, providing shipping solutions for E-Commerce retailers and traders across the nation. Celebrating 40 years of success in 2023, CouriersPlease continues to experience exponential year-on-year growth and is the trusted courier partner for Australia’s leading retail brands through its independent Franchise Partners and network affiliates. CouriersPlease is a multi-award-winning courier service, receiving a 5 Star rating on the FRANData Franchise Rating Scale and winning the NORA (National Online Retailers Association) Solution Partners Best Carrier Award in 2023. With 800+ active franchise territories and 400 support staff across 18 depot locations, CouriersPlease is committed to upholding its company values of Safety, Trust, Total Customer, One Team, Top Execution and Transformation. Visit couriersplease.com.au

[1]Spending on essentials slows as Aussies under 40 grapple with cost-of-living

[2]How much, and when the RBA will cut interest rates in 2025

[3] Spending on essentials slows as Aussies under 40 grapple with cost-of-living

[4]How much, and when the RBA will cut interest rates in 2025

[5] Spending on essentials slows as Aussies under 40 grapple with cost-of-living