The holiday shopping season is starting earlier than ever, with most people spending their Christmas money in early November. The economy’s uncertainty has many shoppers wondering how it will affect their holiday shopping. According to a survey conducted by Deloitte in 2022, retailers are still optimistic about the holiday season.
The survey was conducted to gather information about the expectations of Australian retailers for the upcoming holiday season. It also identified key trends and priorities for the country’s retailers in 2023, including shipping and delivery options.
The survey revealed that the December period is the most critical time of the year for retailers, with 24% saying that it is their most challenging time. They are more confident that their logistics teams will meet the demand, though they are less likely to grow their sales over the next few years.
More than half of retailers expect online sales to grow this year, though they are less likely to increase their margins. Around 76% believe that the importance of ESG is important to brand perception, and 48% said that personalising the experience is a vital part of their business.
According to Melissa Dean, the theme of the past decade has been a coming-of-age story for Australian retailers. It’s a period that has seen significant changes in the global retail industry. It’s when the promise of e-commerce took hold, resulting in the emergence of a booming fulfilment industry. It also saw the world rethink what a real-world store should be.
Despite the various challenges that the industry has faced over the past decade, it’s still important to note that despite the changes that have occurred, the Australian retail industry is still able to maintain its profitability. As retailers look past the Covid-19 era, they see the potential of new business models and technology to transform their operations. This will allow them to capitalise on the emerging trends of the consumer.
Even with the economy’s uncertainty, the Australian consumer is still expected to spend and support the country’s retailers. They can still adapt to their changing needs by shopping with them.
According to Paul Zahra, the CEO of the Australian Retailers Association, the Christmas period is the most critical time of the year for retailers. It’s also the time when most of their discretionary stores make up a significant portion of their profits. Despite the positive mood that retailers feel, they are still uncertain about the impact of the cost-of-living challenges on their sales.
When the financial stress levels of households rise, consumers must cut back on their discretionary purchases. The shortage of workers is the biggest issue retailers face as they enter the Christmas season. Due to the high number of job vacancies in the industry, many businesses are struggling to meet the demand of their customers. This is why they should plan and hire the necessary staff for in-store, shipping, and delivery services for holiday shoppers.