AFTER a long year, retailers across Australia will be counting on consumers safely stepping out of the bubble this Christmas – in store and in the home.
As retailers look beyond lockdowns to the all-important Christmas trading period, Deloitte’s annual Retailers’ Christmas Survey 2020 shows signs of optimism: the percentage of retailers expecting more than five percent growth this year has nearly doubled since last year, illustrating that while retail spending will likely be lower in 2020, many retailers are seeing supercharged demand for their products as consumers spend more time at home with the share of wallet for retailers shifting accordingly.
Now in its ninth year, key survey findings include:
74 percent of retailers say Jobkeeper has helped them avoid redundancies during the pandemic
Strong polarisation in growth expectations: 39 percent of retailers expect Christmas sales to exceed 2019 by more than 5 percent; contrasting with 24 percent who expect them to decline by more than 5 percent
71 percent expect online sales during Christmas to exceed the same period last year
The proportion of respondents expecting over 10 percent of their total sales to be online this Christmas is 44 percent, the highest in the history of the survey
A story of sales polarisation
Despite the optimism for some, the survey shows a two-speed retail highway, with some retailers in the fast lane and others seemingly stuck in first.
David White, national leader of Deloitte’s Retail, Wholesale & Distribution Group, said, “This year’s Retailers’ Christmas Survey reflects the uneven impact of the pandemic on Australian retailers. Some have benefited from border closures and consumers spending more time at home, whereas others in the services, apparel and catered food market have borne the brunt of the downturn.
“The polarisation of the market means that there is not just one narrative around COVID-19 but many.”
