The 'personalisation' effect boosting some small businesses

Amid the uncertain future of a major department store and the predicted slowing of retail spending, the value of retail goods and services has grown in the ACT.

A marketing expert says the "personalisation" of the industry has been a major change impacting this new era of spending.

One Canberra business owner says developing a relationship with her customers was "the only way to survive".

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.

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

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.

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.

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.

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.