Australian small retailers are hoping for a prosperous end to the year with the majority (73%) saying this festive trading period will be extremely important (42%) or very important (31%) to their business.
The Australian Retailers Association (ARA) & American Express Small Retail Index shows 44% of small retailers are forecasting sales to be slightly up or significantly up on last year’s figures, while 31% say they expect sales to be flat compared to last year.
The introduction of new products and services will be a primary focus for many small retailers (35%). Most surveyed (57%) are expecting more customers to prioritise sales and discounts this festive season, with 28% saying they will be offering more promotions to meet this rising demand. Almost three quarters (73%) of small retailers are trying something new this year to entice customers, with only 27% following the same approach as in previous years.
Black Friday and Cyber Monday will play a key role for small retailers, with 26% of small retailers taking part in these upcoming sales events. Of those participating, 84% have engaged in these promotions previously, while an additional 26% are participating for the first time.
Around 2 in 5 (39%) say the achievement they are most proud of in 2024 is the resilience they have displayed despite economic headwinds, and that their goal for the new year is to find greater work-life balance (54%).
And many are feeling positive about the future, with 41% of small retailers saying they feel somewhat (34%) or very (7%) optimistic about trading conditions in 2025. 31% say they feel neutral.
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.
“We are predicting a $69.7 billion boost in the lead up to Christmas, with $6.7 billion spent over the Black Friday / Cyber Monday period alone.
“Australians are stocking up on gifts early, with many shoppers choosing to tick off their Christmas lists by the end of this month.
“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.”
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.
“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 said 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,” Mrs Di Salvo said.
“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.”
