Retailers need ‘laser focus’ on value, not discounts, says KPMG report
Retailers can expect increased spending from customers during the holiday sales period, according to new insights from KPMG.
An early peak in spending will likely occur during Black Friday and Cyber Monday sales periods while sales might start to “fizzle” pre-Christmas.
KPMG’s head of retail, Lisa Bora, urged retailers to remain “laser focussed” on offering value, not just discounts, between now and the end of the year.
“Communicating that value for money proposition consistently is going to be crucial in encouraging customers to continue that spending momentum the lead up to Christmas.”
Bora said delivery channels – be it online or in-store – need to focus on speed and convenience to meet increasing customer expectations in what is expected to be a busy spending period.
Retailers should focus on managing their stock turns to ensure that higher-than-normal stock levels and investments in ‘safety stock’ are sold through over Christmas.
The Black Friday and Cyber Monday sales events have helped November become one of the busiest months for retailers.
Quoting ABS data, Bora said Australian consumers spent more than $3 billion on clothing, footwear and personal items in November last year, compared to $2.6 billion in December. Spending on household items reached $6.4 billion in November, falling to nearly $5.8 billion in December.