Australian retailers forecast a $69.7 billion boost in the lead up to Christmas, expecting this coming trading season will be “more essential than ever.”
The Australian Retailers Association (ARA) and American Express Small Retail Index shows that 44 per cent of small retailers are expecting sales to be slightly up or significantly up from last year.
Meanwhile, 31 per cent said they expect sales to remain flat.
About 35 per cent of small retailers will primarily focus on the introduction of new products and services while 57 per cent are expecting more customers to prioritise sales and discounts.
“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,” said Fleur Brown, chief industry officer at ARA.
“While customers are being savvy with their dollars in certain areas, they also are showing increased spending across food and discretionary categories which includes sporting and recreational goods – proving that shoppers want to enjoy some little luxuries without breaking the bank.”
The survey also showed that 26 per cent of small retailers will take part in the Black Friday and Cyber Monday sales, with 26 per cent participating for the first time and 84 per cent having engaged in these events previously.
