Some say that the best sources of information include cab drivers and hairdressers – not that I have a hairdresser. Then there is the ABS and the various retail associations all with their views on how good/bad retail is tracking. Personally I prefer word of mouth because I am never quite sure what is included/excluded from the statistics and I am really only interested in mainstream, general retailing and this excludes food. My information is that November was a particularly tough month f
or many retailers and that the first couple of weeks of December was not much better. However as we all know, the week leading up to Christmas is when it all happens or doesn’t.
Looking at it objectively, it is incredible that one week in the year can have such an impact for retailers. For many smaller retailers it is crunch week. They have been hanging in there for months and depending on Christmas trade will determine whether they close their doors in the 2016 or whether they give it another year.
Watching it on a daily basis, I believe that the good news is that the second half of December is looking pretty good so far.
With some large retailers starting their Christmas campaigns as early as August, one wonders whether the whole Christmas “bang” is being dissipated somewhat and whether this is a good thing or a bad thing. Traditionally the Christmas shops were scheduled for October which some say was early enough. August is really pushing the envelope, a bit like summer and winter sales getting earlier and earlier.
What we really need (and will never get) is agreement from the majority of retailers when events will begin and end. The reason this will never happen is that some retailers get themselves into trouble and need to get out of trouble quickly or they don’t want any other retailer beating them to it.
Is this good for retail? You be the judge.
A merry festive season to all those who read this column and thanks for your support.
Stuart Bennie is a retail consultant at Impact Retailing and can be contacted at stuart@impactretailing.com.au or 0414 631 702.
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