As we look ahead to 2026, the Australian retail landscape continues to demonstrate resilience and evolution. Strong employment, population growth, and strengthening domestic and international tourism continue to underpin performance across key retail categories. However, the way consumers discover, engage with, and experience retail is transforming, demanding sharper strategic focus.
At Mirvac, our portfolio benefits from strategic positioning in high-growth urban areas with strong demographics, supported by ongoing constraints in retail space per capita. As an integrated property group, we are uniquely placed to deliver retail as part of mixed-use ecosystems, serving people where they live, work, and spend their time.
The convergence of physical and digital, local and global, and wellness and retail presents both complexity and opportunity. While the trends shaping 2026 are not entirely new, their acceleration and intersection will define successful retail destinations for the decade ahead.
Authentic connection to place: curating retail that reflects community
The most successful retail destinations in 2026 will be those that are genuinely connected to their communities. These are places shaped by local character, culture, and needs – destinations that couldn’t exist anywhere else.
This goes beyond tenant mix. It’s about experiences and spaces that authentically reflect local identity and foster connection. When done well, retail destinations become gathering places woven into the social fabric of their neighbourhoods.
The recently opened Rebel concept store in Broadway’s refurbished Model & Moxham building demonstrates this approach. Occupying the former Grace Bros site, the store blends historic architecture with contemporary experiential design. Customers have embraced the format while engaging with the building’s heritage, showing how respecting the past can enhance modern retail.
Authentic placemaking also responds directly to local context. Kawana Shoppingworld’s nature-inspired playground reflects the coastal environment and local turtle community integral to the Sunshine Coast identity. It’s a facility that feels distinctly Kawana – strengthening community connection while enhancing the retail experience.
Local relevance extends to programming and events. When curated to reflect community demographics and culture, signature experiences – such as seasonal activations – become anticipated traditions and destination drawcards. These investments signal genuine understanding of local communities, creating emotional connection, loyalty, and sustained performance.
Consumers are also seeking locally relevant products alongside national brands. Integrating local makers, celebrating neighbourhood businesses, and elevating local voices through marketing and events allows retail destinations to become true community anchors with a competitive advantage that is difficult to replicate.
The AI revolution is reshaping retail discovery and service
We are at an inflection point in how consumers find and interact with retail. Traditional search behaviour is rapidly being replaced by AI-powered discovery, where consumers ask conversational questions and receive curated recommendations – often without clicking through to websites.
For retail destinations, this presents both risk and opportunity. Centres that don’t appear in AI-generated recommendations risk invisibility, while those providing rich, accurate, and helpful information are rewarded. At a category level, there will be clear winners and losers.
AI is also reshaping customer service expectations. Consumers increasingly expect instant, personalised, always-on assistance, with self-service as the default and seamless escalation to human support when needed. AI-enhanced guest services can provide natural language responses, real-time information, and continuity across touchpoints – going beyond basic queries to deliver genuinely helpful experiences.
This evolution supports the rise of ‘phygital’ retail, blending digital convenience with physical spaces through smart wayfinding, click-and-collect, and integrated loyalty programs. The goal is not to replace human connection, but to remove friction and enable choice, supporting both fast self-service and personalised human interaction.
Health and wellness: evolving into lifestyle hubs
Health and wellness has shifted from a category focus to a foundational element of retail destinations. Consumers increasingly view shopping centres as contributors to their overall wellbeing, not just transactional spaces.
Wellness is now defined holistically, encompassing physical, mental and emotional health. This influences purchasing across categories – from food and beauty to apparel and home – and is led by Gen Z, who are investing in wellness-enhancing products and experiences.
We’re seeing an intersection of traditional healthcare, preventative services, and holistic practices. Medical centres and treatment services are seeking retail-adjacent locations, while alternative wellness offerings and lifestyle-focused programming continue to grow. This isn’t a contradiction – it’s a choice. Consumers want access across the wellness spectrum, from clinical services to spiritual and lifestyle experiences.
Sustainability: from aspiration to operational imperative
Sustainability is an operational necessity. Consumers, particularly younger generations, actively disengage from brands that fail to demonstrate genuine environmental commitment. This requires embedding sustainability into every layer of retail development and operation – from materials and energy systems to tenant requirements.
The food and beverage category presents both opportunity and responsibility. With dining anchoring the social experience, addressing food waste is critical. Technologies such as food waste recycling systems that convert organic waste into reusable by-products are helping divert landfill and reduce emissions.
Looking ahead
The retail landscape rewards those who understand that complexity is the new operating environment. Our focus remains on creating thriving destinations that function as community anchors – places where retail, wellness, dining, services, and social connection come together seamlessly.
The fundamentals endure: understanding customers, supporting retail partners, and creating places people genuinely want to spend time. How we execute continues to evolve, shaped by technology, consumer behaviour, and the unique character of each community. That evolution is what keeps retail dynamic – and where the greatest opportunity lies.
- This article by Alison Flemming General Manager, Portfolio Management – Retail & BTR, Mirvac, was first published in SCN magazine – Big Guns 2026 edition
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