With the holiday season upon us once again, 2018 Christmas retail sales are set to grow 2.9% to $51.5B. The annual Christmas retail sales forecasts conducted by Roy Morgan in partnership with the Australian Retailers Association (ARA) indicate Australians will spend nearly $51.5 billion across retail stores during the Christmas trading period from November 9-December 24 (46 days).
Growth in retail spend is predicted across six categories: food, household goods, hospitality, apparel, department stores and other. The highest percentage growth on 2017 is predicted in the food category at 3.7% and the lowest percentage growth is set for department stores at 0.3%.
Apparel and household goods will record a significant increase in trade, a predicted $4 billion to be spent on apparel (this includes clothing, footwear and accessories) this is a 3.1% increase from 2017. For household goods a 2% increase from 2017 is predicted.
Retail sales are forecast for the strongest growth in NSW, Victoria, South Australian and Tasmania. Victoria leads the way with a predicted 5.2% growth to over $13.5 billion.
Closer to home in Queensland, we expect a more modest but still very healthy 1.7% increase on 2017 according to Roy Morgan and the ARA. This will take Queensland retail spend over the $10 billion mark for the first time.
With Australian retailers set for a busy period it is often a time that smaller to medium sized retailers really put their retail business management software to the test. For example, do you have your stock under control so that you can fulfil customer demand in this busy period? Do you understand your best sellers by season? The worst customer experience is when your business cannot fulfil their needs because you do not have control and visibility over supply and demand. And the result is that your customers will go to your competitors. With Christmas fast approaching they do not have the luxury of time to wait until you have the product the want. What’s worse, they may in fact stay with your competitors. So the reality is that you stand to lose more that just Christmas sales. You may lose loyal customers too.
So it goes without saying that any limitations of your current retail business management software will be exposed at this very busy time of year. Your software solution may suffice throughout the year but the holiday retail season can often highlight that your business has outgrown your current all in one business management software solution.
Unfortunately, it’s too late to rectify once the festive season is upon us, it’s all hands on deck to service customers, get orders dispatched and make it through to close of trade of 24th December! However, it does give busy retailers the opportunity to reflect on the capability and functionality of your retail business management software and whether it’s still fulfilling and exceeding your business needs. If your retail business management software is struggling to keep up this holiday season, give the Foresiight team a call and get the right solution in place for 2019. Find out more.
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