Shifting Habits, Shifting Spaces: What Is Driving Demand in 2026

Australian retail is entering a period of rapid transformation. Rising living costs, shifting priorities and a more research-driven customer mindset have forced brands to rethink how they use retail space. As a result, many retailers are moving away from long commitments and towards flexible short-term hire and short-term retail activations. These formats allow faster testing, quicker rollouts and stronger customer engagement.

At the same time, shoppers have become more intentional. They compare options more closely, seek clarity before purchasing and expect brands to meet them in the right place at the right time. Because of this, understanding these shifts is essential for anyone using or managing retail space in 2026.

Physical Retail Remains a Powerful Influence

Despite the continued growth of digital channels, Australians still prefer visiting stores for many purchases. In particular, the ability to see, touch and verify products remains a major advantage of physical retail.

As a result, demand for retail space hire and short-term pop ups continues to grow. Seasonal activations, concept stores and limited-time experiences consistently attract high-intent shoppers.

Why it matters for retailers and landlords:
Flexible retail hire reduces risk for brands and helps landlords activate vacant units with engaging, traffic-building concepts.

A More Selective Shopper

Nearly three-quarters of Australians have changed how they buy. Common shifts include:
• Cutting back on non-essentials
• Comparing prices more closely
• Choosing lower cost alternatives
• Seeking better value and reassurance

When money is tight, confidence matters. Physical stores help customers evaluate quality, get advice and feel secure in their purchase decisions. Short-term retail experiences that highlight value can significantly improve conversion.

What Drives Channel Choice

Customers now choose between in-store and online channels based on the task at hand rather than habit alone.

Customers prefer in-store for:

• High-value purchases
• Situations where returns may be likely
• Staff guidance and product testing
• Reliable stock checking

By contrast, customers prefer online for:

• Fast and simple purchases
• Price comparisons
• Repeat and bulk buying
• Times when travel is inconvenient

This behaviour makes strategic use of retail space essential. In practice, short-term hire allows brands to meet customers at moments where physical reassurance has the greatest impact.

This makes strategic use of retail space essential. Short-term hire lets brands meet customers in moments where physical reassurance has the greatest impact.

Research Is Now Part of Every Purchase

Almost every shopper researches before they buy. They expect clear information about:
• Product details
• Stock levels
• Price accuracy
• Return policies
• Customer reviews

If clarity is missing, they move on. Short-term retail activations must therefore align with online information to provide a consistent experience.

Impulse Buying Happens Mostly In Stores

Customers are twice as likely to make unplanned purchases in-store compared with online. Displays, sensory cues and staff engagement strongly influence browsing behaviour.

This is a major advantage for brands using retail space hire to launch collections, test products or run seasonal campaigns. Short-term retail allows for high-impact visual merchandising that boosts basket size and drives discovery.

Omnichannel Expectations Are Rising

Customers now expect a smooth, connected journey across channels. Three common shopper mindsets shape behaviour:

Planners
Value-driven, detail-focused and unlikely to deviate without clear information.

Conditional growers
Open to spending more when the experience feels effortless and worthwhile.

Basket boosters
Impulse driven and motivated by speed, convenience and loyalty perks.

Short-term retail can speak to all three, offering tailored experiences that increase engagement and conversion.

What Retailers Should Prioritise in 2025

Success this year requires stronger alignment between convenience, clarity and experience. Retailers should focus on:
• Consistent information across every channel
• Seamless transitions between online and physical shopping
• In-store experiences that build trust and connection
• Flexible retail space that allows fast experimentation
• Data-driven decision-making for locations and product choices

Short-term hire gives brands the agility to respond quickly, test new markets and engage customers without long-term commitments.

Activate Your Next Retail Moment with Spacenow

Spacenow connects brands with premium retail space across Australia, from boutique shopfronts to major shopping centre locations. Whether you want to test a concept, launch a campaign or scale fast, our short-term retail options offer the flexibility you need.

Explore short-term retail spaces
Book a location for your next activation
List your retail space and attract quality tenants