Published on Nov 29, 2016
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Australian retailers have expressed confidence that Christmas spending this year will exceed the amount spent last year, according to a survey by Deloitte.
Deloitte’s report shows:
Deloitte state that this confidence stems from a reasonably good financial year nationally combined with low interest rates.
“Certain retail sectors have faced more challenging environments, such as groceries where there has been strong price deflation. Nevertheless, it’s been a positive year for many overall and expectations for Christmas 2016 are good, with most retailers expecting growth in revenue and margins.
“Competition is fiercer than ever, but Australian retailers seem more confident in their ability to rise to the challenge,” said David White for Deloitte.
Digital marketing is still a vital part of generating business sales, despite the number of retailers expecting online sales (above 6%) having dropped from 47% in 2015 to 36% in 2016.
Despite the drop in expectations of online spending, over 80% of retailers surveyed said that getting their digital marketing right is critical to the success of their business.
Businesses look to be preparing for Christmas by discounting earlier than ever. Deloitte found that a third of retailers surveyed were planning to start their Christmas discounting early in December.
Deloitte state that success during the Christmas period comes down to businesses knowing what their customers want and being quick to respond to changes.
Around 40% of income for retailers is generated over the Christmas period. That means getting your business strategy right for this critical period.
- Know your customers and stock your valuable floor space with goods that your customers want
- Have a positive relationship with your suppliers so that you can source items quickly
- Make sure your staff rosters are worked out well in advance, ensure your staff know the products and understand your business philosophy
- Give your customers a friendly and satisfying shopping experience
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