|
Flat trading predictions for 2012
[Thu 23/02/2012 10:53:40]
The figures reveal many of the organisation’s members had disappointing Christmas sales reflecting recent data from the Australian Bureau of Statistics, which showed a drop in turnover for December.
Forty-seven per cent of AGHA survey respondents recorded lower monetary value from customer purchases made in December 2011 than the same month in 2012 despite it traditionally being a boom period for the industry.
Close to 50 per cent also said customers purchased less in dollar value during the post Christmas sales compared to the same time 12 months prior.
Retailer caution can be seen in the stock purchasing figures which showed 42 per cent purchased less sale stock for the post Christmas sales while 39.5 per cent purchased about the same amount. Forty-seven per cent of those who purchased stock specifically for the period said some remained unsold at the end of January.
The outlook remains flat with 46 per cent of respondents revealing the expected value for customer purchases in the first quarter of 2012 will be lower than the same period last year.
AGHA CEO David leek says the results show retailers need to be proactive to encourage spending.
“While interest rate cuts are always welcome news for retailers who rely on consumers’ discretionary spending, the fact that two interest rate cuts late in 2011 seemingly did little to boost consumer spending in the immediate months following demonstrates that the industry needs to be doing more than just relying on cuts to the official cash rate to boost trade,” he says.
“Most of our members are already differentiating themselves from the bigger players effectively by sourcing exciting new products that will fit with customer demand and offering value-added customer service, and we will continue to encourage them to innovate to position our industry as one where you can have a truly magnificent shopping experience.”
|
.jpg)
Retailers expect another subdued year of trading according to new research by the 
