Deck the Malls: How retail franchises are sleighing the Christmas crunch
12th Oct 2023
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By Emily Ainsworth
The festive season is almost upon us, and while Santa’s busy checking his list twice, retail franchises across Australia are gearing up for their own version of a Christmas miracle.
As households increasingly tighten their budgets amid rising interest rates and inflation, the retail franchise sector is pulling out all the stops to entice an ever-growing number of bargain hunters this Christmas.
Provisional forecasts by the Australian Retailers Association (ARA), in conjunction with Roy Morgan, predict $66.8 billion will be spent in the November to December 24 trading period, up slightly by 0.1% or $74,000.
Food spending is tipped to encompass the lion’s share of spending in the lead-up to Christmas, making up $26.7 billion of the overall spend, while hospitality (down 4.2%), household goods (down 3.2%) and clothing (down 0.8%) are bracing for a hit as cost-of-living pressures continue to bite.
But we at Choose Franchise love a good spending spree, so we’ve had a crack at predicting how the retail sector will go from Merry Grinchmas to jingle all the pay.
Tinsel and trends
First off, let’s talk trends. Remember when everyone wanted a slice of that Kmart pie maker? Retail franchises have their finger on the pulse, ensuring they stock up on the hottest items of the season. Whether it’s the latest craze or a timeless classic, franchises are on it!
All I Want for Christmas is… convenience!
In the age of Netflix binges and UberEats, convenience is king. Retail franchises are embracing this by offering extended trading hours, click-and-collect services, and express delivery options. Because let’s face it, is it even Christmas if you haven’t made a last-minute dash to the shops on Christmas Eve? According to IBISWorld, online sales accounted for 11.1 per cent of total retail revenue in Australia in 2020-21. This trend is expected to continue in the future as more consumers seek convenience, variety and value online (discount code, anyone?). Retail franchises are adapting to this by adopting omnichannel strategies that integrate online and offline channels seamlessly.
Sustainable Santa
With more Aussies going green, many franchises are offering sustainable gift options. From eco-friendly products and packaging to gifts that give back, franchises are ensuring we can all celebrate the festive season without costing the Earth.
Jingle Bell Rock… and Roll
And of course, it wouldn’t be Christmas without some festive tunes to get us in the spirit. Many retail franchises are hosting live music events, bringing a touch of holiday cheer to what could be a gloomy shopping experience for households feeling the pinch. So don’t be surprised if you find yourself giving Mariah a run for her money while you’re picking up those frozen prawns at Woolies! According to Deloitte, live music events are one of the creative ways that retail franchises can create memorable customer experiences that drive repeat business and referrals. Deloitte also suggests that other innovative strategies include offering personalised recommendations, customisation options, virtual try-ons, gamification, or experiential retail.
While Santa’s got his elves, Australian retail franchises have their dedicated teams, innovative strategies, and a sprinkle of festive magic to ensure this Christmas is merry, bright and profitable. So, next time you’re out shopping, take a moment to appreciate the hustle and bustle of the retail world. And who knows, you might just find that perfect gift.
