As results for retailing in Australia during May showed mixed signals, many retailers will be hoping for a bit of mid-winter reprieve as the time for mid-season sales fast approaches.
The opportunity to sell excess stock during the colder months presents many consumers with great chances to snap up good deals, which can help to increase turnover during this period of time.
And with the recent decision from the Reserve Bank of Australia to hold the cash rate steady at 2.75 per cent, it may stimulate Australians to feel more comfortable about opening their wallets to spending.
According to the information released by the Australian Bureau of Statistics, overall retail turnover rose by 0.1 per cent seasonally adjusted over the month of May, which helped to recover the 0.1 per cent fall reported in April.
However, cafes, restaurants and takeaway food sales were down by 0.6 per cent, and household goods fell by 0.3 per cent.
Australian National Retailers Association (ANRA) president Margy Osmond stated that the mixed retail results over May might lead to retailers looking forward to an increase in turnover during the mid-season period.
“Retailers are hoping the mid-year sales and the winter period will lead to stronger figures in June/July,” said Ms Osmond in a July 3 statement.
“A bright light is that the cooler weather led to increased spending in department stores – experiencing a 0.8 per cent, with strong gains coming from West Australia, where a nine per cent increase was seen.”
The increase in department store sales may present a good opportunity for retailers to take advantage of the winter weather, which may have many people out looking to grab discounted items.
However, in order for retailers to host mid-winter sales successfully it is important that sales are incorporated into the business’s retail strategy appropriately to ensure that effective measures are being taken to drive up turnover.