Independents anticipate Christmas cheer

A carefully planned and executed Christmas sales strategy will weed out the winners and losers among independent retailers, a leading Melbourne consultancy has warned.

Australian Retail Services (ARS), which specialises in small and medium-sized enterprises, has urged independent fashion retailers to take a proactive approach to Christmas sales.

ARS director Debra Templar said the Christmas quarter usually accounted for nearly a third of a retailer's annual sales.

"Get it wrong and [inde's] can place [their] future at risk."

Retailers had experienced tough conditions in recent months, being stung by rising fuel prices and unseasonal winter weather.

Well publicised teething problems with the Australian Customs Service's newly installed Integrated Cargo System - which reached a head in October, leaving wharves in some of the country's busiest wharves congested with product and retailers saddled with shrinking stock levels - had only added to their woes.

However, successful boutiques had recognised the importance of proactively wooing customers early in the season and had strategies in place that had helped them negotiate the winter wave, Templar said.
Retailers spoken to by Ragtrader appeared optimistic the impending Christmas period would help claw back some lost revenue.

Sarah Homburg, proprietor of Divalicious boutique in Queensland's Airlie Beach, said she knew of few retailers who did not up the ante during the Christmas period.

"You really have to make the most of it and get customers into the store. It's been a tough year so far, particularly as in my market people are spending on property and fuel costs have gone up. Customers are also concentrating on getting their credit spending down."

Divalicious operated a countdown in the 12 weeks leading to Christmas, with regular email updates to key customers, a free gift-wrapping and gift tag service and a Christmas gift register, she said.

"Girls and women come into the store and go around with a clipboard making a note of everything they like. A letter then gets sent to their parents or husbands who can come in and buy something from the list, knowing it will still be a surprise."

Eleni Penglis, proprietor of Eleni boutique in Sydney, said the fortnight preceding Christmas would be her busiest time for maximising sales.

"I usually stock up on singlets, tops and casual items and do a special promotion - say, two t-shirts for $20 - which I then gift wrap."

Joanne Griffin, owner of Melbourne boutique Blondies, said she was "very optimistic" about Christmas sales.

"Usually we hit a slump after the Melbourne Spring Racing Carnival but we haven't experienced one this year. As long as not too many people jump on the sales bandwagon too quickly, we should be alright."

Blondies had organised a successful VIP shopping night in November and did not anticipate having to go on sale before Christmas.

"I think people will buy more this summer because they weren't buying last summer. They're doing the big wardrobe shop at the moment, which is unusual for this time of year."