After a massive sprint through Black Friday, Christmas, and every promo in between, it’s no surprise Q1 2025 has felt a little... steadier.Retailers across New Zealand and Australia have spent the start of the year catching their breath - and getting a real read on how shoppers are thinking, feeling, and spending.And there’s good news: while things are still cautious out there, it’s clear that consumers are spending - they’re just getting smarter (and choosier) about where their dollars go. For brands who are ready to meet them where they are - online, in-store, on socials, and everywhere in between - there are real opportunities ahead.Here's what we learned from Q1 - and what retailers should have on their radar to turn 2025 into a year of sustainable wins.The State of Retail: Two Economies at PlayIf Q4 2024 was all about moving stock fast, Q1 2025 has been about moving smarter. Across both New Zealand and Australia, we’ve seen consumers recalibrate - still willing to spend, but doing it with sharper priorities.In New Zealand, there were early signs of recovery:Retail sales volumes lifted +0.9% in Q4 2024 (seasonally adjusted) - the first quarterly gain in a year.Online spending hit NZ$1.73 billion across October to December, up +9% year-on-year, according to NZ Post.But February 2025 card transactions dipped -4.3% YoY, showing that after the festive season, shoppers tightened up again.In Australia, the story looked a little stronger:Retail sales volumes climbed +1.0% quarter-on-quarter in Q4 2024, the biggest lift in over two years.January and February 2025 turnover kept momentum going, up around +3.7% year-on-year across both months.Ecommerce’s share of total retail nudged higher too, reaching 11.5% by February.The big takeaway? Confidence hasn’t roared back yet - but it’s stabilising. Shoppers are still buying, just a little more carefully, and brands that can tune into what matters most to them (value, flexibility, relevance) are the ones most l...