Recruiting Tomorrow’s Customer: OC&C Retail Proposition Index 2025

Australia’s retail landscape looks stable from the outside – but beneath steady sales, shopper loyalty is fracturing. This year’s Retail Proposition Index (RPI) reveals how trust, not price, has become the new currency of conversion. The brands that rise aren’t the cheapest; they’re the clearest. They make one promise and deliver it flawlessly, every time.

Now in its fifth year in Australia, the OC&C RPI draws on responses from over 5,000 Australian consumers to understand which retailers are winning hearts, minds and baskets – and why.

Consistency Is the New Agility

After years of volatility, consumer confidence is slowly returning. Shoppers are refocusing from survival to selectivity and rewarding brands that keep their promises. Half of Australians say “fair and consistent pricing” is their top trust factor, and the highest-ranked brands all deliver it.

Those combining trust with a clear differentiator – be it quality, range or value – convert most effectively. In contrast, those chasing every trend risk losing relevance.

The Fragmented, Fiercely Values-Driven Gen Z

There’s no single Gen Z shopper anymore. They are fragmented, fickle and fiercely values-driven – seeking brands that feel personal, purposeful and present across every platform. Sustainability has resurged as a top motivator, with 78% of Gen Z influenced by environmental impact when shopping.

To win over Australia’s youngest shoppers, brands must personalise engagement, show loyalty that feels real, and meet them where discovery happens, from TikTok and marketplaces to AI-powered assistants.

AI Is Rewriting the Retail Funnel

AI is changing not just how shoppers find brands, but how they decide what to want. Algorithms now anticipate intent, curating shortlists before a search is even typed. Retailers must adapt by making their propositions readable to machines and irresistible to humans.

Winning brands will strengthen direct relationships through loyalty and first-party data, ensure products are AI-visible, and offer experiences algorithms can’t replicate.

What It Takes to Win

Trust, consistency and clarity are now the cornerstones of success. The strongest brands stand still on their promises, even as the market shifts around them.

For our full insight, download our report below.