Christmas shoppers set to cut their spending – here’s how to keep those registers ringing

Retailers must advertise their businesses, order plenty of stock and invest in training staff in order to prepare for the Christmas period, a retail industry expert has warned.

The advice comes as the Westpac-Melbourne Institute survey of consumer sentiment revealed yesterday that 35% of consumers are not willing to spend as much money this Christmas period compared to last year.

Brian Walker, managing director of consultancy group Retail Doctor, says businesses must firstly take advantage of cheap advertising rates and get some ads in the public eye.

“Retailers must make sure they’ve presented all of their shops, and their online site especially, very strongly. They need to advertise their very appealing offers, the good hero products, they need to focus in on making sure they are advertising what people need to buy. Invest in some local advertising.”

Secondly, Walker says, businesses must work on maintaining appropriate inventory levels so they won’t be caught out without stock.

“Hopefully businesses will already be planning their Christmas deliveries right now. They need to have good flow of stock, understand what sells well and what doesn’t.”

“It’s also a good period to invest in a value product that invites customers to come back. It’s just an impulse buy, a bag stuffer that may say ‘thank you for shopping, here’s a $5 discount for next year when you come back’. It will attract people.”

Finally, Walker says retailers need to invest in staff training, ensure their teams are up-to-date with new products, and are able to connect with customers.

“They need to make sure their staff are well trained in sales and service techniques. To up sell, and build relationships with customers and focus on selling, they need to focus on customer needs and be really attentive in this period.”

They also need to make sure they have not only core staff, but back-up staff, because many work long hours during this period.

“Putting in an incentive program or bonus program would be a good idea as well. In a mixed consumer confidence market, they have to work a little harder to make that sale.”

Walker’s comments come after the Westpac-Melbourne Institute revealed yesterday only 14% of consumers will spend more on presents this year compared to last year, while 35% intend to spend less. However, Walker says the news isn’t all bad.

“The consumer sentiment indices are mixed. While some are definitely done, there is some confidence, and there is a feel that consumer sentiment is returning. In general terms, confidence is increasing.”