Retail roundup

Two recent reports analysing the state of current retail have painted a mixed picture of the market, and a glimpse of the future ahead.

According to ANZ, which recently released its Small Business Sales Trends report for October, sales growth among small businesses has remained relatively soft, and particularly weak in the categories of appliances, clothing and homewares.

The monthly report aims to deliver an up-to-date view on trading conditions for small businesses, and is based on the most significant trends observed from the data collected from over 20 million credit and debit card transactions that pass through ANZ systems every week.

According to the results, while clothing & fashion sales grew by 1.1 per cent in the month of October, the category overall declined -0.3 per cent in the three months to October, and -0.9 on a yearly basis for 2012.

In addition, ANZ general manager of small business Nick Reade said the environment looks set to continue to remain challenging for small business in Australia – particularly for those in sectors and states not involved in the mining industry.

“Overall, growth in small business sales has remained quite soft and mixed across sectors and states. It’s positive to see such a strong result for companies offering travel and food-related services, but for retailers selling appliances like fridges and TVs, clothing and household items, the outlook remains less favourable,” he said.

However, another recent study, conducted by retail experts Retail Doctor Group, in conjunction with the Ebeltoft Group, has revealed that despite the doom and gloom, retailers are actively adapting to maintain market share.

The tough conditions, according to Retail Doctor Group CEO Brian Walker are actually encouraging retailers to innovate, with Australian fashion companies Shoes of Prey and Joe Button at the forefront of change.

“Individual retailers who are poised to take advantage of these key innovation trends have the opportunity to thrive in the future and successfully position themselves within the global retail marketplace,” Walker said.

“By continuously understanding their audiences and staying one step ahead with innovative practices, they are leaders as opposed to follower brands, demonstrating very fit business practices.”

The report, Retail Innovations 8, aims to identify new trends and concepts that are transforming retail, by tracking retail case studies, ranging from bricks-and-mortar to on-line and cross-channel.

This year’s research included more than 40 best practice case studies from 16 countries, and featured best practice companies including Top3 by design, Shoes of Prey and Joe Button from Australia, alongside Desigual (Spain), Walgreens (US), Fangsuo Commune (China), Tesco (UK) and Adidas NEO (Germany).

Through its research, Retail Innovations 8 also identified the following recent global innovation trends as a blueprint for the future of retailing:

• Customisation and Crowdsourcing – where customers have an active role in defining and determining the retailer´s assortment;

• Hyper Local – proof of the real power in truly being local;

• Online/Offline Mashup [omni-channel] – blending the online and offline retail experience together, allowing customers to shop where, when and how they want.