It’s seven weeks til Christmas, here comes the sales frenzy

Inflation is at 30 year highs, coming in at 7.3 per cent in the September quarter, while the price of everyday items such as fruit and red meat has skyrocketed as local producers fight rising costs and tough weather conditions.

These pressures have the power to curb discretionary spending, but the local retail sector is optimistic that a spending slowdown won’t happen until early next year. Retail trade figures for September show spending was up by 0.6 per cent across the country, and categories such as clothing and footwear are still accelerating.

Arnott said while a spending slowdown was coming, across the sector companies were “pretty buoyant” about the festive sales season.

‘We’re seeing a broader range of deep offers and sharp offers with retailers able to get their hands on more.’

Grant Arnott, Click Frenzy founder

“It’s slowing down, but I don’t think it’s slowing down to the level we’ve all expected,” he said.

Retailers are acutely aware of the cost of living crunch, however, which is leading to a more sophisticated approach to sales events such as Click Frenzy. More than 500 brands will be involved in this year’s event, which promotes a range of deals including a limited number of “99 per cent off” offers for shoppers who sign up early.

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A decade ago, companies were testing the waters and were more tentative about the offers to customers. This year, brands have spent months working on their strategies for deals in this period of economic uncertainty.

“There is a lot of planning that goes into buying stock – planning for the customer experience. That has changed demonstrably,” Arnott said.

Retailers are predicting that cost of living pressures will elevate the importance of pre-Christmas sales, he said.

Supply chain issues have also started to resolve after a tough festive trading period last year. Brands have started planning their inventories earlier this year, Arnott said, which also means they are offering deeper discounts than in previous years.

“We’re seeing a broader range of deep offers and sharp offers with retailers able to get their hands on more.”

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