Businesses prepare for robust increase in Christmas spending

As the festive season draws near, Australian retailers and businesses are bracing themselves for the coming Christmas period. The season of giving is well known to be a raucous period for all businesses, but it can be surprising just how much of an effect it can have on those in retail.

A September 16 2014 Shopify article noted that a business can make almost half of its turnover in the later months, with a huge proportion of that resulting from the Christmas rush. Australians spend billions in gifts, food, travel and decorations, making December one of the most important retail periods of any year.

Increases expected across the board

This year is likely to be no different: the Australian Retailers Association has released a Christmas spending forecast predicting a robust 3.6 per cent national increase in Christmas spending from last year, bringing the total expenditure to an impressive $46.7 billion dollars.

A large proportion of this is spent on food and groceries, but the largest increase is to be those in the "other" category of retail with a jump of 5.6 per cent, with clothing taking a close second with a 4.7 per cent increase. Online retailers will also be doing a roaring trade: once thought to be a major obstacle for Australian physical retailers, a large number of Australian businesses have also prepared an online presence. This has had genuine benefits according to Roy Morgan research. 34 per cent of all online purchases going to traditional retailers that have embraced eCommerce. 

Preparing your business

Are you prepared for the holiday season? One of the most important parts of making the most of Christmas spending is having a considered and professional business development plan that is tailored to your budget, your needs and your niche. With Christmas just around the corner, it is more important than ever to make sure that your finances and your cash flow are on track.