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[title] => Retailers brace for ‘crucial’ Black Friday sales period
[alias] => retailers-brace-for-crucial-black-holiday-sales-period
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Australian retail businesses are looking to maximise their festive campaigns this year with around half planning to compete in the Black Friday sales, according to Xero research.
[fulltext] =>
Recent research by Xero has indicated that 60 per cent of small- to medium-sized businesses feel pressure to compete with bigger businesses during Black Friday with retailers looking to make the most of the holiday spending period this year.
A survey of more than 550 SMBs found that half of businesses will be taking part this year, with a third of all businesses surveyed saying they feel the need to offer discounts often to keep up with big businesses and competitors.
One-third of businesses also stated that they wanted to minimise the risk of customers shopping elsewhere.
However, a quarter of SMBs will not take part in Black Friday this year. This decision to not take part was mainly driven by affordability issues at 29 per cent, followed by inventory limitations at 19 per cent, logistical challenges at 11 per cent and concerns that heavy discounting would negatively impact their profit margins at 15 per cent.
The survey also found that 37 per cent of businesses rarely or never offer customers discounts because they can't afford to.
Accounting firm BDO said the six-week holiday spending season, starting with Black Friday sales, was likely to be crucial this year after a turbulent year for the retail industry.
This period often accounts for up to two-thirds of a small retailer's annual profit, according to BDO.
BDO head of retail Salim Biskri said that after a challenging year marked by rising costs and shifting consumer habits, retailers face the task of maximising their festive campaigns.
“It’s been a tough year for retailers, making a successful holiday period campaign all the more crucial,” Biskri said.
“Success will hinge on embracing technologies and automation to streamline operations and handle the surge in online orders."
With uncertainty surrounding interest rates and a rise in the cost of living, Biskri said there has been a noticeable trend of budget-conscious shoppers turning away from luxury brands.
“A noticeable new trend is that fast-fashion brands like Temu and Shein are taking a bigger share of those festive season sales," he said.
“This is driven by a drop in discretionary spending and therefore those ultra-cheap fast fashion brands prevailing as more customers are expected to celebrate this festive season on a smaller budget.”
However, with Black Friday often kicking off an intense shopping period, Biskri warned that retailers should be aware of the rising risks to their digital security.
"As online shopping continues to dominate, particularly during major sales events like Black Friday, cyber criminals are increasingly targeting retailers handling large volumes of transactions," he said.
“The sheer volume of online traffic and the rush of deals create prime opportunities for hackers to exploit vulnerabilities, whether through data breaches, payment fraud, or ransomware attacks.”
Biskri said that for retailers, the financial and reputational costs of a cyber attack can be crippling, not only impacting consumer trust but also disrupting operations at a time when every sale counts.
“It’s important for businesses to bolster their cyber security protocols, invest in robust encryption and fraud detection systems, and train staff to recognise potential threats," he said.
“With the stakes higher than ever, a proactive approach to cyber security will be key to ensuring a smooth and secure holiday shopping experience for both retailers and consumers alike.”
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[metadesc] => Australian retail businesses are looking to maximise their festive campaigns this year with around half planning to compete in the Black Friday sales, according to Xero research.
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