Nearly half of Australian small retailers are struggling to meet their financial expectations. The Australian Retailers Association (ARA) has found that despite the wave of economic pressure, businesses are showing resilience.
New research reveals three creative strategies that small retailers try out amid rising inflation, steep interest rates, and increasing costs.
- 67% are looking for innovative ways to acquire new business.
- 57% focussed on encouraging customer loyalty.
- 30% want to improve online engagement with customers as a priority.
Most respondents (90%) say they have incurred higher costs in the past 12 months.
Some have reported passing on the costs to consumers (51%), others reducing margins (47%), while 37% have resorted to reducing staff.
Innovative strategies for customer acquisition
Attracting new customers is difficult, especially under the current economic climate. The ARA says, however, that small businesses are using innovation as the cornerstone to survive and grow.
What makes a retailer stand apart is its use of digital strategies, personalization of the shopping experience, and building community engagement.
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Technologies like AI-driven customer insights and data analytics help retailers better target potential customers and personalize their offerings.
By adopting AI-driven customer insights and data analytics, these retailers are better equipped to target potential customers and tailor their offerings.
Building customer loyalty in tough times
Loyalty programs, personalized experiences, and exceptional customer service are used to keep customers while they, too, are hunting for value for money.
“Small businesses are a crucial part of the retail community and a bellwether for the health of our sector. Small retailers are also embracing omnichannel strategies, ensuring a seamless experience across in-store and online interactions,” says ARA CEO Paul Zara.
American Express’ Robert Tedesco warns that supporting small businesses is critical. “Small businesses are the backbone of the local economy.”
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Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
