Dismal Retail Condition Still Stirs Optimism
As Myers and other major retailers revealed plans to reduce their store numbers to survive the ongoing slump, sellers' group has expressed optimism that a considerable pick up late into the holiday season could offer some relief.
In Western Australia alone, the state's Retail Traders Association (RTA) has projected that consumers are poised to spend some $3 billion amidst indications that the country's general consumer sentiments were far from encouraging.
RTA representative Wayne Spencer said that by the end of the holiday shopping season, retail sales in WA are estimated to jump by as much as 2.5 percent, compared to last year's performance, as more shoppers are expected to run into stores this week, the final week prior to Christmas.
Spencer reported that retailers have started offering price cuts as early as Sunday in preparation for the Boxing Day sales, in hopes more shoppers would come out and let go of their cash.
"Not all products have had a good run this year so they are certainly discounting to create cash flow and traffic this Christmas," the RTA official said.
"We feel that West Australians during the Christmas and New Year period do and will spend, and we're hoping that that will carry on with a little bit of extra confidence into the New Year," ABC reported RTA as saying on its statement.
However, the group's optimism was not shared by Myers, Portmans and Fletcher Jones who all admitted that they're taking a beating this year and shrinking their sizes could be the best answer in weathering the temporary storm.
Myer has confirmed that a number of stores in ACT and Melbourne will be shuttered early next year while both Portmans and Fletcher Jones have admitted that some their of their shops will also cease their operations in order to save more cash.
These stores, the three firms said, were performing below expectations.
According to News.com.au, consumers across the nation greeted the summer sale season with relative chill and retailers have reported downtrends on sales of shoes and apparels.
The cold weather doused consumers' enthusiasm, according to Australian Retailers Association executive director Russell Zimmerman, who added that "retailers out there are seeing some blue sky, a bit more tinsel on the Christmas tree."
Hardest hit, Zimmerman said, are clothing retailers, which "are still doing it fairly tough out there."