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- Australian retailers are optimistic, anticipating robust trading conditions in the run-up to the critical Christmas season of 2021
- According to Deloitte’s Retailers Christmas Survey 2021, 80 per cent of retailers predict sales growth in 2021, a 20 per cent increase from 2020
- More than half believe sales will bounce back rapidly after lockdowns, with nearly 90 per cent expecting trading conditions to improve over the next 12 months
- However, 55 per cent are concerned about receiving sufficient stock for Christmas, with 72 per cent highlighting shipping costs as having a material impact on their input costs
Australian retailers are upbeat and anticipate brisk trade conditions in the run-up to the crucial Christmas season of 2021.
According to Deloitte’s Retailers Christmas Survey 2021, retailers are more confident in the customer than at any previous point in the survey’s 10-year history, as the country emerges from COVID-induced lockdowns with a spring in its step.
The study examines retailer attitude for the next Christmas season and reveals significant trends, expectations and objectives for Australian retailers for 2022, revealing that 80 per cent of retailers predict sales growth in 2021, a 20 per cent increase from 2020.
More than half believe sales to bounce back rapidly after lockdowns, with nearly 90 per cent expecting trading conditions to improve over the next 12 months.
However, 55 per cent are concerned about receiving sufficient stock for Christmas amid increasing supply chain issues, with 72 per cent highlighting shipping costs as having a material impact on their input expenses.
Deloitte’s National Leader, Retail, Wholesale & Distribution Group, David White, said Australian retail has been on a genuine rollercoaster ride since the onset of COVID-19.
“Agility became key, and many pivoted quickly by building out online distribution networks and investing in logistics, eCommerce, analytics and CRM to tide them over,” he said.
“Digital offerings are likely here to stay, but Christmas has always been about the physical shopping experience and, as the vaccine-led reopening and recovery takes hold and retailers welcome cashed-up customers back to their stores, they finally feel they have something to be optimistic about.
“Our respondents expect the store network to continue to be their main source of revenue, supported by click and collect and digitally-enabled instore experiences.
“And, with customers fatigued by months of lockdown when they step out and into stores, retailers offering new product ranges, personalised marketing, seamless experiences across all channels, and anything ‘new and different’, are most likely to be the winners this holiday season.”
There is cautious optimism on this front, but still concerns about sufficient stock being available for peak Christmas trading, Mr White said.
“And while consumer demand is expected to be strong, higher freight costs and the on-going requirements to ensure COVID-safe retail environments means there will be ongoing pressures on margins,” he said.
“Skills shortages, particularly in digital and supply chain, are also on the minds of many.”
