Small businesses riding the 'personalisation' wave in retail

When Mia Petterson was younger, her mum ran a retail store on Lonsdale Street in Braddon, in Canberra's inner north.

Fast forward to 2026, and Mia is following in her footsteps.

The 28-year-old curates vintage and second-hand items for her Blonde Concept store — which happens to be on the very same street her mum's was on. 

"I just grew up around pretty things and clothes,"

she said.

"So the name, obviously not a huge amount of creativity involved in that, just got to be honest.

"But it's very true to me, and that's really what I wanted it to be. I wanted it to feel authentic and not forced."

Since her mum's days working in the industry, Ms Petterson said retail had "100 per cent" changed, with buyers shifting towards secondhand and online purchasing.

Social media has become a huge part of the way people shop, too.

Dr Andrew Hughes, a marketing lecturer at the Australian National University, said businesses who use social and digital platforms to boost and maintain engagement were more likely to succeed. 

"Nowadays [shopping] combines the social factor as well," Dr Hughes said.

"Perhaps the person who runs the store is an influencer — that's so big nowadays in retail. You connect with a person who runs the store because you know them from social media, and then you visit their store second."

'A case study in how to do marketing well'

Nationally, retail turnover is predicted to slow to 1.5 per cent next financial year, from 2.8 per cent, according to the latest quarterly forecast by Deloitte Access Economics.

But in the ACT, government data shows a near one per cent rise in the value of goods and services produced by the retail industry, indicating its increased value to the broader ACT economy.

Dr Hughes said retail results are often a "mixed bag", but successful businesses in the ACT that have managed to connect in multiple ways with their customers "are really a case study in how to do marketing well".

"They have good connection with their consumer base, they do good service provision and they're active on socials," he said.

Ms Petterson said developing a relationship with her customers was "the only way to survive".

"I think one of my main priorities has always been creating a really comfortable, inviting environment for shoppers where they feel like they can try anything on, chat to me, like chat to the girls who work here, and I want people to leave feeling inspired," she said.

"Even if they don't leave with a piece of clothing, I want them to leave feeling excited to wear what they want and express themselves how they want."

The 'personalisation' of industry

This personalised approach is something Dr Hughes believes will become a trademark of success in a new era of retail — and something that Australia's premier department store brand David Jones failed to adapt to.

"We're in a different environment," Dr Hughes said.

"People still spend, but the spending is linked in with experiences which are more personal to who they are.

"That personalisation effect, David Jones has not kept pace with."

Dr Hughes said keeping up with younger markets was also key for retail businesses.

"For a lot of the younger markets, the most common thing I hear nowadays is, if I can't afford a [house], I'll spend some more money on retail," he said.

"Good for them, I get where they're at, you need some fun in life. 

"If it isn't going to be eating noodles and toast and celebrating your first home, then why not have some fun spending that on some retail items."