New research by American Express shows that Aussies are ready to spend big at Christmas with an average of $220 on gifts for loved ones.
However, if just one of these gifts was purchased from a local small business, a potential $4.4 billion would make its way to the sector.
Lisa Belcher, vice president of small merchants for American Express, says the research shows that almost one third (31 per cent) of Australian owned and operated small businesses say that this year’s Covid crisis has been the hardest period their business has ever endured.
“Compared to last year, average sales are down 35 per cent and operators are pulling out all the stops to make this Christmas successful,” she says.
Indeed, American Express’ latest Shop Small campaign urges shoppers to do their Christmas shopping with small businesses this year to help accelerate their recovery.
“We launched Shop Small in Australia in 2013 and this annual call for support for small businesses has never been more important.”
In a sign of just how critical the festive trading period will be for small business operators, the research shows it will be make-or-break for nearly one third (30 per cent) of Australian small businesses. These operators say that without strong sales they won’t survive. Another 38 per cent say that weak sales will force their hand at having to make serious changes to their business.
Gill Minervini, the newly appointed festival director of Sydney’s light extravaganza, Vivid, has created festive window displays in three small businesses, bringing joy to local communities and much needed foot traffic into stores.
“For this year’s campaign, we were inspired by the spectacular window displays traditionally seen in larger retailers around the world. On a slightly smaller scale, we are delivering the same level of delight and magic to local communities but most importantly bringing customers, ready to spend, through the doors of small businesses,” adds Belcher
Minervini says that having parents who owned a small business and seeing just how hard they worked to make it a success, she’s proud to be part of a campaign that encourages support for the sector at a critical time of year, as not many people have had it tougher than small business owners lately.
“In working with each business, I’ve brought to life their story in a way that reflects the spirit of the season and showcases a great range of Christmas gifts available in-store,” she enthuses.
“Each small business owner told me it was largely down to the support of their local community that has kept them operating, so the hope is that these window displays will act as a small ‘thank you’ by bringing joy to those who see them as well as more shoppers to the local area.”
Chris Balken, who co-owns the Collector Store which sells fashion, homewares and furniture in Sydney’s Paddington, is one of the small businesses involved in the campaign. He is relying on this festive season to recoup revenue losses from recent lockdowns and set his business up well for the new year.
“My wife and I, and our small team, work all year for the festive period,” he explains.
“We rely on this time of year to bring in the additional revenue we need to close the year on a positive note. However, for us, it’s also about ending the year supporting the beautiful families and locals who shop with us in store all year round by helping them find that perfect gift―it’s our way to give back to our community.”
The Australian Retailers Association (ARA) is also backing the campaign as it estimates the daily impact on retail trade during the recent lockdowns was over $55 million per day in Victoria and over $40 million per day in NSW, so there was a lot of pain and devastation felt across the two largest cities.
“With businesses ramping up their operations for Christmas―a time when many discretionary stores, like those in fashion, footwear and accessories make up two thirds of their annual profit―the outlook is positive,” CEO Paul Zahra says.
“Australian consumers are forecast to spend around $58 billion in the pre-Christmas sales, which is in line with last year and up 11.3 per cent on pre-pandemic conditions in 2019. The ARA is delighted to support American Express’ latest Shop Small campaign with the hope that small businesses receive their fair share of spend, as for many, the stakes are high this Christmas.”
