Retailers are hopeful for a successful end of year trading season with 44 per cent of small retailers forecasting sales to be slightly up or significantly up on last year’s figures, while 31 per cent say they expect sales to be flat compared to last year.
The Australian Retailers Association (ARA) and American Express Small Retail Index shows the majority (73 per cent) saying this festive trading period will be extremely important (42 per cent) or very important (31 per cent) to their business and the introduction of new products and services will be a primary focus for many small retailers (35 per cent).
ARA chief industry affairs officer, Fleur Brown, says that there is eager anticipation amongst retailers as they race to the end of year finish line.
“This peak season trading period is more essential for retailers than ever, offering many discretionary retailers the chance to make up to two thirds of their annual profits,” she explains.
“We are predicting a $69.7 billion boost in the lead up to Christmas, with $6.7 billion spent over the Black Friday and Cyber Monday period alone.”
Most surveyed (57 per cent) are expecting more customers to prioritise sales and discounts this festive season, with 28 per cent saying they will be offering more promotions to meet this rising demand. Almost three quarters (73 per cent) of small retailers are trying something new this year to entice customers, with only 27 per cent following the same approach as in previous years.
Robert Tedesco, vice president of American Express Global Merchant Services, says that many small businesses will be pulling out all the stops this festive season.
“Small businesses are the heart of our retail sector and we know that many Australians will be shopping local this year,” he says.
“Christmas is the perfect opportunity for small businesses to engage with their local communities and to really make the most of the consumer appetite for gifts and in-store experiences.
“It’s encouraging to hear that many small businesses are employing new ways to engage customers and that their outlook is optimistic for the Christmas trading period.”
Michelle Di Salvo of Southern Belle Boutique adds that this year she will be focusing more than ever on personalising the customer experience.
“My focus this year is to really engage with my local community and do what I can to spoil my customers,” she enthuses.
“I’ll be hosting VIP nights just before Christmas, handing out personalised Christmas cards and offering Christmas food instore to really get everyone in the festive spirit.
“We’re already a close-knit community, but those extra touches are what help build that returning client base when the customers know they are getting an experience they can’t get elsewhere.”
Image: iStock/AJ_Watt
