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NSW businesses celebrate with a Christmas bash

December 06, 2011

Trading conditions have started to turn around for New South Wales small businesses and many are planning to celebrate with an end of year bash, according to the Sensis® Business Index released today.

Report author Ms Christena Singh said New South Wales small businesses had experienced strong improvements in profitability and sales during the quarter.

“Business confidence has improved strongly during the quarter and businesses are expecting sales and profitability to improve further during the summer period.

“While these figures give New South Wales small businesses some reason for celebration, conditions are still challenging for many, and Christmas trading on the whole is expected to be down on last year.

“However, unlike many of the states and territories which are expecting large falls in Christmas trading, New South Wales businesses are expecting Christmas trading conditions to be only slightly down on last year,” she explained.

Overall, 27 per cent of New South Wales businesses are expecting trading conditions to be busier this Christmas, while 30 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 trading, an average increase of 20 per cent is predicted. Businesses anticipating a downturn in trading are expecting conditions to be 23 per cent slower than last year.

The Sensis® Business Index indicates 63 per cent of New South Wales small businesses are planning to hold a Christmas party for staff, clients or suppliers this year, up substantially from 48 per cent last year.

“Some New South Wales small businesses are also taking a proactive approach to managing the Christmas period this year, particular in relation to increasing advertising activities and introducing sales promotions.

“In some cases, 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, 23 per cent small businesses are planning activities to manage the Christmas period, up two percentage points on last year.

Increasing advertising is the most popular activity planned (24 per cent), followed by introducing sales promotions (15 per cent), introducing new products and services (14 per cent), decreasing staff (12 per cent), adjusting stock levels (11 per cent) and changing advertising and marketing (10 per cent).

Key NSW Indicators for December 2011 Sensis® Business Index: