Slow Christmas trading dampens celebrations in ACT
December 06, 2011
ACT small businesses are predicting weak Christmas trading conditions, and many are not holding an end of year Christmas bash this year, according to the Sensis® Business Index released today.
Report author Ms Christena Singh said ACT small businesses had been experiencing deteriorating conditions over the last six months.
“ACT small businesses recorded the nation’s lowest profitability indicator over the last three months.
“While the summer trading period is expected to provide some improvement in profitability, Christmas trading is expected to be considerably down on last year,” she explained.
Overall, 23 per cent of ACT businesses are expecting trading conditions to be busier this Christmas, while 33 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 25 per cent is expected, the highest increase in the nation. Businesses anticipating a downturn in trading are expecting conditions to be 26 per cent slower than last year.
The Sensis® Business Index indicates 58 per cent of ACT small businesses are planning to hold a Christmas party for staff, clients or suppliers this year, down from 66 per cent last year.
“However, some ACT small businesses are taking a proactive approach to managing the Christmas period this year, particularly in relation to increasing Christmas advertising activities and introducing sales promotions.
“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, 26 per cent of ACT small businesses are planning activities to manage the Christmas period, down one percentage point on last year.
Increasing advertising is the most popular activity planned (39 per cent), followed by introducing sales promotions (15 per cent), extending trading hours (11 per cent) and increasing sales force activities (10 per cent).
Key ACT Indicators for December 2011 Sensis® Business Index:
|
Indicator
|
December 2010
|
December 2011
|
|
Business Confidence
|
+51%
|
+28%
|
|
Sales
|
+4%
|
-12%
|
|
Employment
|
-3%
|
+4%
|
|
Wages and Salaries
|
+11%
|
+0%
|
|
Prices
|
+1%
|
+6%
|
|
Profitability
|
+7%
|
-30%
|
|
Capital expenditure
|
-11%
|
-8%
|
|
Approval of ACT Government
|
-20%
|
-14%
|
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