Hello Chasers,
The annual commemoration of the birth of Jesus Christ is a widely observed (and commercialised) holiday, celebrated on December 25th by billions of people around the world.
Leading up to the holiday, consumers will undoubtedly be in search of the perfect gifts for their loved ones and small businesses across the nation will experience increased traffic – on and offline.
Roy Morgan Research has partnered with the Australian Retailers Association (ARA) to model the expected retail sales in the run-up to Christmas and Roy Morgan’s data scientists are predicting pre-Christmas retail sales to reach a record high of $66.8 billion, up slightly 1% from 2022, despite the economic pressures facing households. Compared to 2022, spending on food is projected to increase 2.4%, mainly driven by supply input price increases. The categories of Hospitality (down 4.2%), Household Goods (down 3.2%) and Clothing (down 0.8%) are bracing for a softening of spending in the lead up to Christmas 2023 as cost-of-living pressures continue to bite.
Department stores (up 2.9%) and other retailing (up 1.7%) – which includes categories such as recreational goods, books, cosmetics – are poised to record sales growth on last year.
Small businesses can still hope to meet consumer needs and demand (if they can keep adequate stock levels which may be hampered by delivery delays) while reaping the benefits of increased sales this holiday season by adopting some simple plans.
If your small business plans to do both this Christmas shopping season, here are four simple ways to get started:
- Create Christmas Promotional Material
Invest in Christmas promotional material for your small business. This can include, Gift cards, Christmas calendars, Christmas newsletters, etc. Anything your company generally uses as promotional material can now be promoted with a Christmas-centric approach.
Many consumers expect businesses to promote festive communications during the holiday season. It’s also a great way to give back, raise brand awareness, and inject a healthy dose of Christmas spirit into your business.
- Test and Measure Christmas Advertising
Generally, advertising can be an effective tool for every small business — especially before and during the holiday shopping season.
Therefore, consider how to properly leverage seasonal advertising opportunities.
Depending on your current marketing strategy you may invest in local TV or radio ads if you’re looking to drive retail foot traffic to your store. But don’t discount the effectiveness of online advertising, and social media efforts that if done properly can create a viral effect.
Aside from these mediums, local newspaper advertising may be an option if it aligns with your demographic audience’s media consumption. Test and measure advertising efforts this holiday season to determine which efforts produce the best ROI.
- Launch Christmas Sales and Discounts
If your small business is looking to increase sales during the holiday season look to market some attractive discounts and sales.
Depending on your sales strategies, it may be advantageous to give loyal customers discount coupons, organise customer surveys and reward respondents with freebies. Many small businesses will look to spread Christmas cheer this season by wearing Santa Claus hats, decking their halls with Christmas decorations and providing small gifts for patrons. These types of activities can draw the foot traffic of admiring consumers into your store — indirectly impacting sales.
- Give Your Team Christmas Gifts
Don’t forget to celebrate your team this holiday season.
Acknowledge their efforts in various ways – which can include gifts, monetary rewards, recognition, holiday parties.
Have a great day!
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