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Slow Christmas trading dampens celebrations in QLD

December 06, 2011

Queensland small businesses are predicting weak summer trading conditions, and many are not holding an end of year Christmas bash, according to the Sensis® Business Index released today.

Report author Ms Christena Singh said Queensland small businesses had been experiencing challenging conditions since the natural disasters hit early in the year.

“Business confidence has improved in Queensland over the last three months as the result of improved trading conditions, particularly an upswing in sales.

“However, the summer trading period is expected to provide no reason for celebration, with Queensland profitability and sales expected to be the nation’s weakest.

“Christmas trading is also expected to be considerably down on last year,” she explained.

Overall, 26 per cent of Queensland businesses are expecting trading conditions to be busier this Christmas, while 36 per cent are expecting conditions to be quieter and the remainder are expecting it to be line ball with last year.

For those expecting an upswing in Christmas trading, an average increase of 17 per cent is expected, one of the lowest increases in the nation. Businesses anticipating a downturn in trading are expecting conditions to be 27 per cent slower than last year, the nation’s biggest downturn.

The Sensis® Business Index indicates 49 per cent of Queensland small businesses are planning to hold a Christmas party for staff, clients or suppliers this year, down from 51 per cent in Queensland last year, and well below the level of celebrations expected across the nation (58 per cent).

“However, some Queensland small businesses are taking a proactive approach to managing the Christmas period this year, particular in relation to increasing advertising activities and extending hours.

“For some businesses, for example in the accommodation, café and restaurant sector, it is about gearing the business up for a traditionally busy period of the year. For other businesses, for example in the finance and insurance sector, it is about managing the business through one of the quietest periods of the year,” she explained.

Overall, 20 per cent Queensland small businesses are planning activities to manage the Christmas period, down two percentage points on last year.

Increasing advertising is the most popular activity planned (32 per cent), followed by extending trading hours (12 per cent), introducing sales promotions (10 per cent), and adjusting stock levels (eight per cent).

Key QLD Indicators for December 2011 Sensis® Business Index: