35% of Australian small retailers introduce new products for festive shoppers

44% of anticipate sales to rise compared to last year.

Australian small retailers are focusing on innovation this festive season, with 35% introducing new products and services to attract shoppers, according to the latest Australian Retailers Association (ARA) and American Express Small Retail Index.

The report also said that 44% are anticipating sales to rise compared to last year, whilst 31% predict flat sales.

With 57% of surveyed retailers expecting customers to focus on sales and discounts, 28% are planning additional promotions to cater to demand. Notably, nearly three-quarters (73%) of small businesses are experimenting with new strategies this year, while 27% are maintaining their traditional approaches.

Sales events like Black Friday and Cyber Monday are also gaining traction, with 26% of small retailers participating. Amongst these, 84% are returning participants, while 26% are joining for the first time.

Despite economic pressures, nearly 2 in 5 small retailers (39%) cited resilience as their proudest achievement in 2024.

Looking ahead, 54% aim to achieve better work-life balance in the new year. Optimism about future trading conditions remains moderate, with 41% expressing some level of confidence about 2025, whilst 31% report feeling neutral.

“This peak season trading period is more essential for retailers than ever, offering many discretionary retailers the chance to make up to two thirds of their annual profits,” said Fleur Brown, ARA chief idustry affairs officer,

“Whilst customers are being savvy with their dollars in certain areas, they also are showing increased spending across food and discretionary categories which includes sporting and recreational goods – proving that shoppers want to enjoy some little luxuries without breaking the bank,” she said.