Retailers cautiously optimistic about Christmas trade

Niche retailers offering differentiated product and sharp promotions look set to thrive on surprisingly buoyant Christmas trade, as delineated in a recent survey.

The Australian Retailers Association (ARA) Retail Christmas Expectations Survey showed retailers were "cautiously optimistic" about trading during the holiday season, with 43 per cent expecting sales to be the same or better than last year's record trade, despite the global downturn. Released on November 18, the survey - which tracks retail prospects for the 2008 Christmas season including sales, profitability, employment and marketing plans - found more than 59 per cent of retailers who said they were optimistic about the 2008 Christmas trading season expected sales to increase by between 10 and 20 per cent.

Retailers were working to boost consumer sentiment, with over 43 per cent surveyed planning pre-Christmas sales. Over 61 per cent had utilised point of sale promotions, while 25 per cent had implemented special Christmas giveaways and competitions, and 67 per cent were planning print, television and radio advertisements.

Suzanne Trevaskis, retail division manager for high-end label Metalicus, echoed the survey's findings.

"We're trading very well at the moment and some of our stores are showing significant increases on last year, for example our GPO store in Melbourne is up 60 per cent on last year. We're not cocky but we're pretty confident."

She attributed solid trade to a combination of factors.

"I think our product is very niche and appeals to a consumer with some disposable income, who still has money to spend despite the downturn," she said. Metalicus had also invested more heavily in Christmas promotions than ever before.

"We've created a fabulous Christmas window themed around the idea of filling up your Christmas stockings with an easy gift, given our one-size-fits-all product."

Festive gift packs for adults and children were selling well, she said.

David Lawrence brand business manager Holly Martin said the retailer was strongly promoting its party and resortwear offer for the Christmas season, offering gift-wrapping for its privilege customers.

"We're pretty confident about Christmas trade and we are definitely up on last year," she said.

According ARA executive director Richard Evans low interest rates, dropping fuel prices and the Rudd Government's stimulus package - set to land in accounts on December 8 - would boost holiday trade further.