Two-thirds of Australian small retailers prioritise innovative customer strategies

This comes amidst ongoing financial struggles affecting many small businesses.

About 67% of small retailers are prioritising innovative strategies to attract new customers, according to new study by the Australian Retailers Association (ARA) and American Express.

This effort comes as many small businesses face financial challenges, with 51% falling short of their financial expectations and 49% either meeting or exceeding their forecasts.

The report also showed that 57% of these small retailers are working on increasing customer loyalty, and nearly 30% are prioritising better online engagement.

Key concerns for the next six to 12 months include a slowdown in consumer spending (59%), rising wage costs (46%), increased costs of goods and services (42%), and cash flow management (32%).

“This research demonstrates resilience amongst the small business cohort despite tough times,” said ARA CEO Paul Zahra. “Unfortunately, many are struggling to cope with rising inflation, steep interest rates and the cost-of-doing-business crunch.”

Moreover, the survey also found that 89% of small retailers have encountered higher costs in the past year, prompting them to pass on costs to consumers (51%), reduce profit margins (47%), and make other cost-cutting measures (37%).

Zahra assured that ARA will continue to advocate for government relief measures to ensure that Australia’s $420b retail sector not only survives but thrives.