How can Australian retailers stay relevant and competitive as consumer expectations change at unprecedented speeds?
The answer, according to Maurice Zicman, Vice President – CX Strategy at TP in Australia, lies in embracing AI-led, emotionally intelligent models, which, he says, are critical to staying competitive in a rapidly evolving market.
Time to re-evaluate legacy retail systems
According to retail trade data from the Australian Bureau of Statistics (ABS), retail trade surged by 1.2% in June 2025, with shoppers splurging on End of Financial Year bargains.
As retail trade surges, Mr Zicman says consumers – particularly Gen Z and millennials – expect retailers to match their pace and preferences in real time.
According to Mr Zicman, in order to keep up with consumers, it’s time for retailers to “re-evaluate legacy systems” and embrace digital transformation.
“For many in the retail space, that means re-evaluating legacy systems and accelerating digital transformation with a renewed sense of urgency towards an elevated customer experience (CX),” he says.
“In today’s market, speed is the new currency and success hinges on not only how quickly you can deliver a product, but how fast you can anticipate, understand and respond to consumer needs.”
Retailers need to become more agile
Mr Zicman advises retailers to become more agile in how they connect with customers across every channel in this rapidly evolving environment.
“We’ve seen firsthand how the most innovative retailers are responding – partnering with outsourcing companies like us to invest in AI-powered customer service, building integrated support teams, and embracing data-driven personalisation to deepen customer engagement,” he says.
Using e-commerce brands as an example, Mr Zicman highlights the benefits of integrating tech like conversational AI within social media channels.
“Major E-commerce brands are integrating conversational AI within their social media channels,” he notes.
“Customers can chat in real time for help with sizing, availability or even style advice.
“This shift can help to generate incremental revenue while reducing friction across the customer journey.”
It’s about meeting consumers where they are, Mr Zicman adds, and using digital tools that make this fast and seamless.
Retail is a people business
However, Mr Zicman points out that while embracing evolving tech like AI and automation is key, at its core retail remains a people business and emotional intelligence (EI) is a critical differentiator.
“Customers remember how a brand makes them feel, whether they feel heard, understood and valued,” he says.
“The best retailers are blending technology with human empathy, using AI to handle repetitive queries while empowering service teams to focus on emotionally charged interactions – resolving a failed delivery, answering a question about a return, or navigating a sensitive payment issue.
‘Powered by EI, enabled by AI’
Mr Zicman says “empathy is the edge” for retailers.
“Done right, this human-digital hybrid doesn’t just solve problems, it builds trust, loyalty and long-term brand equity.
“With empathy and human connection at our core, we champion a ‘High-Tech, High-Touch’ approach — leveraging EI-AI at best to deliver top-notch customer experience management.
“By integrating cutting-edge technology with genuine human touch, we help brands meet rising expectations while staying true to what matters most: meaningful customer relationships.”
Insights and analytics
Mr Zicman notes that AI isn’t limited to meeting customer demand – it can also help retails turn customer data into meaningful action.
“AI can help retailers go beyond analytics to create hyper-personalised experiences at scale – predicting when someone might abandon a cart, which products to recommend and what message will resonate most,” he says.
“We’re also seeing growing interest in generative AI for everything from trend forecasting to dynamic product design.
“In a market where the definition of “in style” changes by the hour, this technology can help brands scale faster, test smarter and stay ahead of what’s next.”
The takeaways for retailers
“The key takeaway is customers are watching, comparing and expecting every brand to deliver with the same speed and ease,” says Mr Zicman.
“Australian retailers that embrace this mindset, combining the right technology, partners and CX strategies will be best placed to thrive.”
A customer acceleration era
“The truth is, we’re not just in a retail transformation, we’re in a customer acceleration era,” says Mr Zicman.
“The retailers that will succeed are those who match the momentum of the customers they serve.
“That means speeding up decision-making and investing in agile transformation technologies and solutions that allow businesses to act and react in real time.
“But it also means doubling down on EI, building customer journeys that feel effortless and intuitive, while supporting teams with the tools to make that happen.
“When a business isn’t evolving as fast as its customers do, it’s time to ask why.
“In the race to win the modern shopper, speed is no longer a luxury, it’s an expectation. Because, each interaction matters,” he says.
