5 Risks Australian Retailers Shouldn’t Ignore in 2025

In a fast-evolving retail landscape, businesses are acutely aware of well-publicised risks; think wage compliance, awards misclassification, and the occasional media storm around industrial disputes. But there’s a more subtle set of challenges quietly reshaping the sector.

In this article, I want to shine a light on five risks I see regularly when working with mid-market retail businesses. These aren't always headline-grabbers, but they carry real consequences, especially for businesses that want to stay competitive, compliant, and resilient.

1. Under-Utilisation of Customer Data

Retailers are sitting on goldmines of customer data, but many aren’t using it to its full potential. From historical sales trends to promotional effectiveness and localised preferences, the insights are there. Yet too often, we see businesses defaulting to gut feel over evidence.

With the right tools and time investment, that same data can guide pricing, inventory decisions, and personalised marketing with far greater precision. If you’re only using your systems for transaction processing, you’re leaving opportunity on the table.

2. Ambiguous ROI from Campaigns and Activations

Pop-ups, brand activations, and influencer campaigns are great for visibility, but what are they actually delivering? Many retail teams don’t have the right metrics in place to assess the return on investment. Without structured follow-ups and data tracking, you're relying on assumptions rather than outcomes. It’s time to move from ‘hype’ to hard numbers!

3. Modern Slavery

Modern slavery remains a serious risk, particularly in complex global supply chains where visibility into labour conditions at lower tiers is often limited. Retailers can no longer rely on surface-level assurances or supplier declarations. Transparency must be backed by genuine due diligence, including documented checks, audits, and a clear understanding of where and how products are made. Ethical sourcing isn't just good PR - it's a legal and moral imperative in today’s retail landscape.

4. Supply Chain Fragility

From escalating trade disputes to shipping disruptions through critical routes like the Red Sea and South China Sea, global supply chains are under increasing pressure. Geopolitical tensions, such as the ongoing conflict in the Middle East, shifts in US–China relations, and the threat of new tariffs, could spell disaster for retailers who are overly reliant on single-region sourcing.

These risks are no longer theoretical; they're unfolding in real time. Retailers need to rethink their approach to supply chain resilience by diversifying supplier bases and embedding scenario planning into procurement strategies. Contingency isn’t optional - it’s essential.

5. Hyper-Personalisation and Data Privacy

AI-powered personalisation is revolutionising the customer experience - but it also brings risks. Highly targeted campaigns can feel intrusive if overdone, and regulatory expectations around data privacy are tightening. Retailers need to know exactly what data they’re collecting, where it’s stored, how it’s used, and when it should be deleted. Compliance isn’t just about checking a box, it’s also about maintaining customer trust.

Final Thoughts

None of these risks are insurmountable, but they do require awareness, planning, and a proactive mindset. Retail is a dynamic sector, and the businesses that succeed are those who can adapt to new expectations, both from customers and regulators. Now is the time to take stock, review your systems, and build resilience before issues arise.

If you’re unsure where to start or want a second set of eyes on your risk exposure, reach out. Whether it’s data analytics, modern slavery risk assessment, or supply chain planning, we’re here to help.

To learn more about retail trends in Australia, contact your local RSM office.