I went to the Small Business Week Conference and talks last week.
Maybe something to keep in mind for the elections tomorrow.
This is what the retail experts thought about the next six months in bullet form:
- Overall Retail outlook is healthy and looking good. Don't count on the growth we have seen in the last twelve (12) months which was up by 9%. Much in the short-term they expect will be fueled by the existing high household saving. What happens when that saving runs out is unclear.
- There is a wide range here in the retail outlook across sectors, e.g. some sectors like travel are down, others like second-hand goods are up.
- Shops in the CBD are expected to have continuing problems.
- Staff hiring is expected to be difficult, they suggest looking at mature staff.
- Supply challenges to continue throughout 2022. I know this is hurting my clients now.
- Inflation is up, and goods now take six (6) months from the factory to get to the public. Much of the price rise is on the way as costs suppressed over COVID are now coming.
- Studies have shown that most people prefer to buy products that they can taste, smell and touch. They suggest applying this if possible, e.g. have music in the shop. This is where they see the big plus shops have over the internet. Today 80% of households spent something online last year, yet 85% of goods were brought in shops.
- They thought it was important to realise that most of Generation Z is now in the workforce and a significant chunk of the consumer market.
- Public today is less loyal than before. In a survey, 86% put stock availability over loyalty. If you do not have it, they will go elsewhere.
These are the problems that they see we face.