Australia’s nocturnal economy is growing rapidly, with nighttime spending in 2024 becoming a $20.9 billion industry. While liquor retailers are bound by regulatory trading hour restrictions, these insights can still be highly valuable, offering ways to adapt to changing consumer habits and market dynamics.
The latest Deputy’s 2025 Big Shift Report reveals crucial insights into the nighttime economy, generational workforce dynamics, and emerging work models like micro-shifts. For liquor retailers, staying ahead of these changes is not only necessary but presents a wealth of opportunities to remain competitive.
Even with regulated store hours, the rise of the nocturnal economy presents opportunities for liquor retailers. As shift work grows across Australian cities, the demand for nighttime consumption has increased, especially in places like Brisbane, which saw $6.2 billion in nighttime spending in 2024.
Dr. Shashi Karunanethy, Chief Economist at Geografia, notes that these developments have profound implications for liquor retailers looking to tap into new consumer demands.
“In the coming years, nighttime economic growth is expected to accelerate across all Australian metropolitan cities.”
Dr. Shashi Karunanethy
“This shift is driven by three factors – changing consumer habits and rising incomes, regulatory shifts, and urban heat and climate change impact,” he said.
For instance, Brisbane is leading the charge, with its nighttime economy growing by 10 per cent in 2024. Retailers in Brisbane could capitalise on this trend by extending their operating hours where possible and curating evening-focused promotions. Meanwhile, Sydney is witnessing a decentralisation of evening spending, with suburbs seeing a rise in after-dark commerce. In response, liquor retailers could consider tailoring their offerings to the suburbs, providing localised promotions that cater to residents seeking to socialise closer to home.
The rise of micro-shifts: A game-changer for liquor retailers
Alongside the growth of the nocturnal economy, new work models are gaining traction. One such model is the rise of micro-shifts – smaller, more flexible work periods that provide the stability of traditional shift work with the freedom and choice that gig workers demand. This evolution is particularly relevant for liquor retailers, who often rely on shift workers to manage customer demand during peak hours.
Emma Seymour, CFO of Deputy, explains, “Liquor retailers and businesses who want to attract and retain Gen Z workers must first understand what this generation values when it comes to work, and then adapt processes to accommodate.”
Gen Z, now the largest cohort of shift workers in Australia, prioritise pay and flexibility. By offering micro-shifts, liquor retailers can provide the stability and predictability these workers need, while ensuring flexibility that appeals to their need for work-life balance. This approach can also help retailers meet fluctuating customer demands, particularly during evening and weekend hours.
As more workers seek flexibility in how and when they work, businesses that offer tailored, short shifts will attract a more diverse, engaged, and productive workforce. For liquor retailers, this means not only meeting the needs of employees but also positioning themselves as progressive employers who understand the changing work environment.
Seymour adds, “What Deputy has observed in this year’s report is a growing move towards ‘micro-shifts’. Micro-shifts – more personalised and flexible work periods tailored to balance both employee and workplace needs – offer both the stability of traditional employment while maintaining the flexibility workers demand.”
Attracting a diverse workforce
Generational trends are reshaping the labour market, and liquor retailers must adjust their strategies to accommodate the unique needs of these groups. Gen Z now accounts for more than 47 per cent of all shift work hours, surpassing Millennials for the first time. As a cohort, they are highly motivated by financial security and expect higher wages.
“Nearly 35 per cent of Gen Z shift workers are actively looking for new roles, with more than three-quarters (78 per cent) saying their paycheck is their biggest motivator.”
Emma Seymour
Retailers looking to attract legal-aged members of the Gen Z workforce must offer competitive wages and a work environment that values flexibility and career growth.
“Employers who cling to outdated notions of workplace priorities will find themselves increasingly alienated from the incoming talent they desperately need to thrive,” Seymour adds.
Women, who represent the majority of Australia’s shift workforce, face unique challenges, including financial insecurity and unpredictable schedules. As a result, many women turn to poly-employment, or working multiple jobs simultaneously, to make ends meet.
Seymour explains, “Employers that recognise this and accommodate schedules accordingly will have the most positive impact on their workforces”.
Liquor retailers can provide more reliable work options and flexible hours to support these employees, helping to ensure better retention and job satisfaction.
Seymour continues, “Many liquor retailers and retail workers have adopted poly-employment as it affords greater flexibility in how people work.”
Women have higher rates of poly-employment than men, which reflects broader trends in job mobility and the gender-based divide in how Australian shift workers cope with financial strain.
Embracing technology
In a competitive retail environment, embracing technology is essential for staying ahead. AI-driven scheduling, automation, and smarter job matching can improve productivity and reduce the costs associated with traditional employment. According to Dr. Karunanethy, “Investing in modern technology and upskilling shift workers shouldn’t be optional given their vast contribution to the economy and our everyday lives”.
In the context of the liquor retail sector, AI-powered scheduling can optimise staffing levels during peak hours, such as evenings when demand is highest. Moreover, automation in areas like inventory management or online order fulfilment can free up employees to focus on customer service. This shift towards a more tech-driven operation will not only improve business efficiency but also enhance the overall customer experience.
Dr. Karunanethy highlights that businesses can tackle productivity challenges by restructuring ways of working with smarter job matching, AI-powered scheduling, and increased micro-shift work opportunities.
“Technology has the potential to reshape the industry and drive net job growth,” he says.
By understanding and adapting to these evolving trends, liquor retailers can position themselves for success in a rapidly changing workforce landscape. The nocturnal economy, micro-shifts, and shifting generational preferences are reshaping the way Australians work and consume, and those who can tap into these trends will lead the charge in the next era of retail.
Actionable insights for liquor retailers
- Adapt to the nocturnal economy: With increasing spending after dark, liquor retailers could look to extend hours where possible, especially in high-growth cities like Brisbane, and target suburban areas where evening commerce is on the rise. Tailor promotions and offerings to cater to consumers seeking convenient, late-night options.
- Embrace micro-shifts: The rise of flexible work models like micro-shifts can help liquor retailers address both workforce demands and consumer needs. Offering short, flexible shifts will attract younger, tech-savvy workers while ensuring businesses can meet customer demand during evening hours.
- Attract and retain legal-aged Gen Z workers: To appeal to Gen Z, who are motivated by better pay and flexibility, liquor retailers should offer competitive wages, flexible shifts, and career growth opportunities. Understanding the priorities of this generation is key to building a loyal and effective workforce.
- Support female employees: As women make up the majority of the shift workforce, offering more stable, flexible work opportunities will improve retention. Consider creating job structures that accommodate caregiving responsibilities and provide predictable schedules.
- Leverage technology: Investing in AI-driven scheduling, automation, and online fulfilment systems can streamline operations and reduce costs. By embracing technology, liquor retailers can enhance both productivity and the customer experience.