Consumer disinterest during shopping peak seasons threatens retail recovery
Continued consumer disinterest in traditional shopping periods threatens the recovery of Australia's retail industry.
While one in two Australians intend to buy a new outfit this Spring, tomorrow's Caulfield Cup fillies may be stepping out in vintage frocks with only 4 per cent of those planning to splash out for the carnival season, according to research by the Australian National Retailers Association (ANRA) and American Express.
ANRA CEO Margy Osmond said 20 per cent of 1000 shoppers surveyed will treat themselves if a new dress or shoes takes their fancy, but less than 10 per cent plan to increase their Spring spend from last year, a worrying signal for retailers.
"Retailers are looking to Spring carnival, then on to Christmas 2010 as a sign of recovery for the sector. With poor Spring weather, and continued consumer disinterest in traditional shopping periods that recovery is under threat.
"It's clear from the survey that shoppers won't be springing for a new outfit at the traditional shopping times, it's more evidence Australian shoppers are changing their habits in a post-GFC world.
Respondents said they would be keeping retail spending on a par with 2009 for casual, work and designer clothes, and even shoes - which most women are happy to bet on as an essential accessory for the racing season.
"Little growth is expected in fashion retailing compared with last year, and overall more than a quarter (27 per cent) of shoppers are telling us they plan to reduce spending this month," she said.
Those shoppers who are getting on track with Spring racing will be visiting department stores (30 per cent) and general merchandisers (40 per cent), according to the survey.
"Weddings (7 per cent) and formal occasions like balls (4 per cent) will be the other draw cards for shoppers looking to splash out this Spring, but the season is looking washed out from a retail perspective.
"With threats of interest rate rises, utility bills cutting into household spending and worrying indicators from overseas economies, Australian shoppers aren't willing to take a punt on a new frock," she said.