South Australia’s Retail Sector Shows Resilience Amid Shifts in Shopping Habits

Retail spending in South Australia continues to strengthen, with monthly household expenditure up 5.1% year-on-year as of February 2026, a clear sign that consumer confidence is rebounding despite ongoing cost-of-living concerns. This increase in spending underpins growing activity and investment in the state’s retail sector, particularly within Adelaide’s evolving shopping precincts.

Consumer Sentiment Drives Retail Spending Uptick

After a period of economic uncertainty triggered by the pandemic and inflationary pressures, South Australian consumers are tightening their purse strings less aggressively. The 5.1% rise in household spending, reported by CBRE in February 2026, reflects this renewed appetite for retail. This surge is notable given price pressures that have affected discretionary income. The rebound signals that many households are adjusting to current economic conditions, stimulating demand in categories ranging from fashion to technology goods.

Adelaide’s position as a hub for hi-tech innovation also plays a supporting role with over 3,500 tech jobs driving higher wage opportunities and, consequently, discretionary spending power. This demographic contributes to retail growth, particularly in premium and lifestyle sectors.

Retail Landscape Shifts: Migration and Flagship Openings

The city’s retail districts are in transition. Notably, high-end brands such as Tiffany & Co, Zimmerman, and Georg Jensen are relocating from the Adelaide CBD to Burnside Shopping Centre. This migration represents a strategic repositioning for premium retailers, seeking to tap into Burnside's affluent catchment and modernised facilities. Meanwhile, no new retail supply was recorded in the Adelaide CBD in the first quarter of 2026, indicating a pause in expansion within the central area and highlighting Burnside's growing prominence.

New flagship stores have also opened or are scheduled to open recently in top retail spots: New Balance launched in Rundle Mall in November 2025, alongside Salomon and a two-storey MECCA flagship at Burnside Village, and Adore Beauty’s first South Australian store opened at Westfield Marion.[4] These openings represent the infusion of fresh energy and consumer options outside the CBD core, aligning with shifting shopping patterns.

Foot traffic in the Adelaide CBD has notably surpassed pre-COVID levels, buoyed by over $1 billion in ongoing development projects aimed at transforming the city skyline and retail experience.[5] However, the retail vacancy rate in the CBD rose to 9.3% in the first half of 2025, suggesting that while consumer participation has recovered, structural changes in tenant mix and retail demand are still underway.[2]

Future Outlook and Investment Flows

Looking ahead, Adelaide’s retail sector is anticipated to continue adapting to evolving consumer preferences and urban development. Total retail supply for 2026 is forecast to reach approximately 57,120 square metres, including non-metropolitan areas, revealing a measured approach to new retail space expansion.[2] 37,900 square metres of retail space were already under construction with completions expected by the third quarter of 2026, stressing a responsive development pipeline.[3]

Retailers and investors will need to monitor the migration trends of premium brands carefully, alongside the CBD's vacancy dynamics, as new retail formats and locations gain traction. Shoppers increasingly favour integrated retail precincts like Burnside Village and Westfield Marion, affecting demand for spaces in the traditional central business district.

Consumers can expect more diverse and high-end retail options in suburban centres, while Adelaide’s CBD will likely remain a consolidating hub for service operators and food and beverage outlets, reflecting the city’s mixed-use growth strategy. Meanwhile, ongoing infrastructure investment exceeding $1 billion will contribute to improved accessibility and revitalisation, potentially spurring future retail demand shifts.[5]