Retailers need 'laser focus' on value, not discounts, says KPMG report

Retailers can expect increased spending from customers during the holding sales period, according to new insights from KPMG.

An early peak in spending will likely occur during Black Friday and Cyber Monday sales periods while sales might start to “fizzle” pre-Christmas.

KPMG’s head of retail, Lisa Bora, urged retailers to remain “laser focussed” on offering value, not just discounts, between now and the end of the year.

“Communicating that value for money proposition consistently is going to be crucial in encouraging customers to continue that spending momentum the lead up to Christmas.”

Bora added that the ongoing shortage of sea containers and Covid-related disruptions in China will likely lead to delivery issues during this period.

In order to meet customer expectations, delivery channels – both online and in-store – are recommended to focus on speed and convenience and restock earlier to offset shipping delays.

“Retailers should carefully manage inventory so that products are stored close to where they are in highest demand to smooth out logistics and increase the speed at the point of sale.”

Consumers spent more than $3 billion on clothing, footwear and personal items through November last year, compared to $2.6 billion in December, according to ABS figures.