Christmas comes early as shoppers head back in-store
If you think it’s too early for trees and tinsel… think again. While 10 years ago most Christmas spending occurred in early to mid-December, the holiday trading period now comes earlier than ever, kicking off at the start of November with Black Friday and Cyber Monday now key dates in the retail calendar.
The big question is how the current economic uncertainty will impact shoppers. According to the 2022 Deloitte Retailers’ Holiday Survey, retailers are (cautiously) optimistic that consumers are ready to embrace holiday spending.
The survey report assesses retailer sentiment for the approaching Christmas period, and identifies key trends, expectations and priorities for Australian retailers for 2023. Key survey findings include:
- 24% say December is their critical trading period, down from 37% in 2013
- 58% are confident their logistics teams will meet demand, up from just 29% in 2021
- 67% expect to grow sales over the Christmas period, down from 80% last year
- 43% predict this year’s margin growth will be flat
- 45% expect online sales above 10%, compared to 55% in 2021 - the first time online sales are expected to fall since 2018
- 76% highlight the importance of ESG to brand perception as the number of “conscious consumers” rises
- 76% say personalising the retail experience is the key to connecting with customers
- 48% say data privacy is a high risk for their business as a result of increased customer data collection
- 58% expect consumer confidence to deteriorate through 2023
Melissa Dean, Deloitte’s National Leadersaid: “The overarching theme for Australia's retail over the past ten years has been a coming of age story. It's a ten year period that's seen more fundamental change in the global retail space than any other period in history. It's when the promise of ecommerce really took hold across the world. It saw the explosion of online retail goliaths and created a booming fulfilment industry. It saw the world reconsider what real-world retail stores are for.
“The Australian retail industry has had to continually build resiliency in the face of the obstacles of the past ten years, and well-run operators know that even in a shifting landscape, there are still very healthy profit margins available. As retailers begin to look past COVID-19, there is a sense that technology, innovation and new business models will allow the industry to capitalise on emerging consumer behaviour and take a big step forward toward defining what the future shopping experience will look like.
“Despite the current economic uncertainties, the Australian consumer still loves to spend and by accompanying customers along their journey and adapting to their shifting needs, retailers will be well-placed for a strong holiday period and beyond.”
Download the 2022 Deloitte Retailers’ Holiday Survey here.
