AU small business retailers optimistic about 2026

Three-quarters of Australian small businesses expect stronger results in 2026, according to new data from Shopify. The survey of 500+ local business owners and senior decision-makers explored the business outlook, priorities and technology adoption of Australian small business retailers, with key findings including:

  • Business outlook:
    • 31% of Australian SMBs are much more optimistic about their performance in 2026 and another 44% are somewhat more optimistic, while only 4% expressed negative sentiment about the year ahead.
    • The top two priorities of SMBs in 2026: Revenue growth (32%), improving profitability and cash flow (31%), followed by retaining and growing existing customers (28%), and improving customer experience and support (25%).
  • Where retailers are investing:
    • Strengthening security, privacy, and data protection (36%) and supporting international selling capabilities (32%) are top of mind for SMBs when it comes to the tools to prioritise, alongside using AI and automation for efficiency and content creation (31%).
      • Many also emphasise connecting in-store and online systems (28%) and improving site/app speed and uptime (27%). 
    • When it comes to emerging technologies, Australian SMBs are prioritising customer-facing tools and sales-driving capabilities: One-click checkout (36%) and retail media networks (35%) are seen as essential to compete, alongside creator commerce (32%) and next-day delivery promise (31%). 
  • AI and tech adoption: 
    • Two-in-five local SMBs are in the early majority when it comes to adopting new tech, with many adopting technology once its value is proven. 
    • However, a significant portion (33%) are early adopters, testing and implementing tools ahead of peers. Only a small minority wait until solutions are mainstream (19%) or adopt only when necessary (6%).
    • When it comes to AI, 78% of Australian SMBs report using ChatGPT or another generative AI tool in the past 12 months, while 20% have not used AI, and 2% are unsure. 
    • The most common AI use cases include creating marketing content (37%), generating product content (34%), and analysing data or generating reports (33%). 
  • Community impact:).
    • Nearly three-quarters of SMBs expect to increase their community involvement over the next year, with 33% planning a significant increase and 41% anticipating a moderate rise. 
    • The key ways SMBs support their local communities:
      • Offering affordable access to goods or services (39%) 
      • Providing local jobs (36%)
      • Purchasing from local suppliers (31%) 
      • Providing training and mentorship for local workers and entrepreneurs (29%) – the highest rate among the markets surveyed (US 18%; Canada 22%; UK 16%; Germany 22%)

Methodology: The survey was conducted from November 18th to 29th, 2025 among 513 Australian business owners and senior decision-makers. Businesses included in the study are ones that focus on selling products, and have at least part of their sales conducted online. 

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About Angus Jones

Angus started his first small business in 1989 and has since gone on to have a successful career in marketing. He realised although there were many websites for small business none was addressing the question of how to. Angus has a passion to articulate benefits that add value to customers/readers.

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