Retailers set to throw everything at Christmas

Retailers set to throw everything at Christmas to motivate shy shoppers

“Christmas will come early this year, with many retailers set to start promoting Christmas more than ever given the recession,” says the head of Auckland’s leading retail district.

“There has been a tradition for most retailers not to start promoting Christmas until at least Labour Weekend. This year such restraint will be thrown out the window as retailers play catch up for what has been a tough year. For better or worse consumers can expect to see Christmas decorations and displays popping up in some New Zealand shops over the next few weeks,” says Cameron Brewer, chief executive of the Newmarket Business Association.

“Retailers have struggled to motivate recession wary consumers this year. Christmas is a great motivating tool because most people can’t avoid it. As well as earlier Christmas advertising and arguably more, we’re going to see some interesting businesses try to get on the bandwagon,” he predicts.

“A lot more businesses will try to cash in on Christmas than in previous years. All of a sudden the likes of weed eaters, car tune-ups, and pots and pans will be promoted as potential Christmas presents. Many businesses that wouldn’t have normally promoted their product for Christmas will see it as a good opportunity to motivate consumers.

“We are also going to see a greater emphasis on value. This won’t be the Christmas for flashy presents but more practical ones. Shopping vouchers will be popular, as will clothes, shoes and food.

“Given consumers are holding on to their dollars more, the Christmas rush will probably come very late this year, and the Boxing Day sales will be huge as people redeem vouchers and wait for price reductions.

“Many retailers will view Christmas as the last throw of the dice to improve their trade figures for the calendar year. It is going to be fascinating over the next three months as to how and what is promoted and how the currently cautious consumer responds.

“This will arguably be the toughest Christmas for a generation. Last year turned out alright because the recession hadn’t taken full effort. Since then we’ve had job losses and consumer confidence has taken a hit. Retailers will be hoping that after a tough year many people will be in need of some retail therapy and of course Christmas provides the perfect excuse,” says Cameron Brewer.

Things to watch for this Christmas:

1. Many retailers will start promoting Christmas before Labour Weekend this year.

2. Many retailers will spend more on Christmas advertising this year.

3. More non-traditional Christmas presents will be promoted this year

4. More consumers will focus on presents that are practical, such as shopping vouchers.

5. Many consumers will put off their spending, meaning a late Christmas rush.

6. More consumers will put off giving presents until the Boxing Day sales.

ENDS

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