Small retailers are looking for creative ways to grow their businesses, new research reveals.
According to the latest Australian Retailers Association (ARA) & American Express Small Retail Index, around two-thirds of respondents (67%) are looking for innovative ways to acquire new business, more than half (57%) are focused on encouraging customer loyalty, and nearly a third (30%) are wanting to improve online engagement with their customers.
The research finds that just over half (51%) of the Australian small retail businesses surveyed are performing below or significantly below their financial expectations, while nearly half (49%) are meeting or exceeding their financial forecasts.
The top four concerns for small businesses for the next six to 12 months are a slowdown in consumer spending (59%), wage costs (46%), costs of goods and services (42%) and cashflow management (32 per cent).
ARA CEO Paul Zahra says the research confirms many small businesses are doing it tough yet are seeking opportunities for growth.
“Small businesses are a crucial part of the retail community, and a bellwether for the health of our sector. This research demonstrates resilience amongst the small business cohort despite tough times. Unfortunately, many are struggling to cope with rising inflation, steep interest rates and the cost-of-doing-business crunch,” he says.
“While unsurprising, it is concerning to see that fears around wage costs are on the rise.”
American Express Vice President of Global Merchant Services Australia Robert Tedesco says supporting small business owners is critical for maintaining vibrant communities.
“Small businesses are the backbone of the local economy, which is why American Express is focussing on helping to drive more business through their doors,” he says.
“Initiatives like the American Express Shop Small campaign, underway now through 31 August, can help to make a difference by connecting shoppers with local retailers and reminding shoppers that every dollar spent with a small business contributes to the vitality of their communities.”
