Recently published research has revealed widespread apprehension about the future outlook for Australian retailers.
According to a report published by the Australian Retailers Association (ARA) and American Express Small Retail Index (AESRI), 55 per cent of small to medium-sized retailers are concerned or uncertain about their financial prospects.
The most commonly cited issue was declining consumer spending (57 per cent), while wage costs (41 per cent) and staff shortages (29 per cent) were all pressing concerns.
ARA CEO Paul Zahra said the research highlighted the multi-faceted pressures retailers face.
“It’s a difficult time to own a small business in Australia – one of the most difficult in recent history,” he said.
“Our small retail community is feeling the crunch as shoppers scrutinise their spending and costs continue to increase across the board – wages, rent, utilities, insurances and supply chain costs.”
He added: “They also continue to battle staffing shortages and need to prioritise and resource investment into new technology and sustainability responses.”
To address these issues, retailers suggested expanding their customer base (66 per cent) was a top priority, while 56 per cent reported increased attention towards loyalty programs.
More reading
Revealing research: Pandora world’s most searched jewellery brand
New Zealand: Crime costing retailers billions each year
Australian jewellery retailers wrestling with decreasing sales
Retail nightmare: New Zealand jewellers under siege
Tough sledding: Australian jewellery sales decline in August
Concern over the increasing use of alternative payment methods
