Close to 40 per cent of all retailers anticipate cash flow issues this year, according to research by CouriersPlease.
The findings show that with a drop in consumer spending, 50 per cent of retailers expect a drop in sales revenue and 40 per cent expect their sales to stagnate. Just 10 per cent expect an increase in sales.
Across all businesses, the report found cash flow availability ranks as the biggest concern among retailers.
“That 90 per cent of all retailers surveyed don’t expect an increase in sales this year tells us that Aussie businesses are indeed bracing for impact; we know that appetite for online shopping remains strong and there are tools businesses can embrace to ease that strain,” says CouriersPlease CEO, Richard Thame.
“While small businesses naturally fear being hit the hardest, our research shows they in fact have a unique opportunity to more than just survive the economic rollercoaster, but thrive with the help of AI technology and a better understanding of evolving shopper habits.”
He adds that social media and tech will be key to retaining consumers and boosting cash flow in the coming financial year and encourages micro and small businesses to embrace social platforms.
1 Know who is shopping and when and what those buyers want. Australian online shopping reports show people are buying more during the day than ever before, with most online shoppers purchasing from 2-5pm and Aussies now spending an average of four hours online shopping a week.
Shoppers also value sustainable retailers and Gen Y customers (aged 27-43) spend the most. By boosting sustainable practices, offering click and collect options, easier returns and shorter waiting times, you’ll immediately deliver what most shoppers want in 2024.
2 Strategically time your sales with the help of AI. It’s more important than ever to leverage data analytics to find the best time to run a promotion and tailor the deals to your audience to maximise relevance and engagement. This can be done quickly and cost-effectively with AI sales tools.
For small businesses with limited manpower and budgets, AI for content marketing is a game-changer with many options now available for writing copy, creating images, scheduling time and more.
3 Boost customer retention with loyalty programs. Don’t have a loyalty program? Then get one. Figures released this year show that 95 per cent of Aussies are members of one or more loyalty program, with 18 per cent reporting increased usage over the past year. Another 45 per cent say loyalty programs make them visit retailers more.
Thame adds that loyalty program software is a great way to implement this cheaply and easily. Small businesses could offer rewards for members who make fewer returns, for example.
4 Get an omnichannel presence through pop-ups. Social media is king for ecommerce retailers with Australians shopping through social media channels more than ever. But a pop-up store can help businesses get a physical presence without the immense overheads. They’re also a great way to test potential new markets—market stalls are an inexpensive solution and creating a unique point of difference such as a freebies or even Insta-friendly pic opportunities could build brand recognition.
5 Use final sales as a cost-saving strategy. Buyers love a bargain and final sales are a great way to help savvy shoppers nab a deal and for businesses to clear inventory. Industry data shows only a third of businesses utilise this tactic but it’s important not to throw sustainability out the window.
A lot of businesses have a ‘no returns’ policy with final sales but this adds stress to customers and can mean a jump in landfill for unwanted items. Consider bringing back a customer and environmentally friendly refund policy and consider even offering rewards to customers who trade in pre-loved items.
