Kieran Rivett

Consumer Confidence has surged to its highest point since January 2023. In the retail sector, a $383m block sale of Woolworths remaining shares in Endeavour Group has made waves. Stay up-to-date with Australian ABS trade results and more retail sector trends in PwC's Retail and Consumer Deals Digest. #ConsumerConfidence #RetailTrends #PwC #ABS

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Awesome Chocolate, a leading chocolate manufacturer and retailer provided their sales data for analysis and review. Insights Significant Sales Decline Sales dropped sharply from $34.9M in 2021 to $11.2M in 2022, indicating a major issue in revenue generation or market presence. Geographic Performance Australia is the highest-performing market with $7.9M in sales, showing that it is a strong market for your business compared to others. Sales Patterns Sales are highest on Wednesdays, suggesting that there might be specific patterns or behaviors driving this peak. Product Shift ‘Smooth Sliky Salty’ was a top seller in 2021 but did not make the top 10 in 2022, indicating a shift in consumer preferences or market conditions. Staff Performance The top 10 staff out of 25 account for more than 50% of total sales, highlighting that a small percentage of staff are responsible for a significant portion of revenue. Top Salesperson Gunar Cockshoot, as the number one salesperson with $2.2M in sales, is a major asset to the team. Product Diversification The top 10 products account for less than 50% of total sales, suggesting a broad product range with more evenly distributed sales. Recommendations Investigate Decline in Sales Conduct a detailed analysis to understand the reasons behind the sharp decline in sales. Look into market conditions, changes in consumer behavior, or potential operational issues. Address these factors to develop a recovery strategy. Leverage High-Performing Markets Focus on expanding your presence in Australia. Explore opportunities to replicate the success in other regions by understanding what drives sales in Australia and applying those strategies elsewhere. Optimize Sales on Peak Days Since Wednesdays see the highest sales, consider running special promotions or launching new products on this day to maximize revenue. Analyze customer behavior to understand why Wednesdays are particularly strong. Adapt to Product Preferences Review why ‘Smooth Sliky Salty’ fell out of favor and use these insights to adjust your product offerings. Consider refreshing or phasing out underperforming products and invest in ones that are gaining traction. Support Top Performers Recognize and support the top 10 sales staff. Consider implementing a reward system, providing additional training, or involving them in strategic planning to leverage their success and potentially replicate it across the team. Utilize Gunar Cockshoot’s Expertise Use Gunar Cockshoot’s success as a model for best practices. Analyze his approach to sales, customer interaction, and territory management to develop training programs or strategies that could improve the performance of other sales staff. Review Product Strategy Since the top 10 products make up less than 50% of total sales, review the product portfolio and consider strategies for promoting a more balanced distribution of sales.

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With the cost of living crisis squeezing household budgets, Australian retailers are pulling out all the stops to entice shoppers back into stores. I spoke with 7 News, discussing early Boxing Day sales to extended shopping hours, with retailers offering a plethora of deals and discounts to lure consumers. The ongoing economic pressures have forced many Australians to tighten their belts. To combat this, retailers are adopting aggressive strategies to stimulate consumer demand. This year we have witnessed early Black Friday and Cyber Monday sales events, now rolling into early Boxing Day sales, with many stores offering significant discounts on a wide range of products. This early bird approach aims to capture the attention of savvy shoppers who are looking to stretch the dollar as far as possible. In addition to early sales, retailers are also focusing on creating a more immersive shopping experience. Many stores are investing in in-store activations, events, live music, and food offerings to attract customers and make their shopping trips more enjoyable. By transforming their stores into vibrant destinations, retailers hope to entice consumers to spend more time and money. Data from NAB has shown that 2/3 of purchases on Black Friday, were made in store. #boxingdaysales #retail #consumer #blackfriday #christmas #retail #griffithuniversity

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We are thrilled to announce the re-launch of our business as Grounded Goods, a unique venture specialising in ethical Australian-made returnables, a niche we are proud to pioneer. Our unique approach sets us apart in the market, and we are excited to share our vision with you. Growing up in a family business focused on locally made injection moulding plastics sparked my passion for Australian-made products and how this could link with sustainability and the environment. So, in 2016, I took the plunge and have been using my knowledge and passion to create a business to end single-use plastic waste. When I acquired the Uppercup product in 2017 from designer James Mackay, we were fortunate to be part of a movement that the amazing KeepCup pioneered. As an ethical Australian returnables company, we continuously develop innovative returnable products for swap systems and reusable providers. Our commitment to this cause is unwavering, and we constantly strive to push the boundaries of what is possible in the returnable product space. While we still use the Uppercup in our product offerings, we focus on Australian-made, tech-enabled, fully recyclable, closed-loop, made-to-order products. Our unwavering commitment to the returnable product space is underpinned by a dedication to helping our clients eliminate single-use plastics in various ways. We have a long history of operating as a quiet, behind-the-scenes company working toward our goals. One notable example was our implementation of returnable cups at Woolworths' Head Office over eight years ago. As a result, we have now prevented over 8.5 million single-use cups from waste streams through our SwapCup initiatives and returnable products in facilities, stadiums, systems and large offices. This commitment to sustainability drives us. If you're intrigued by our mission or know someone who could benefit from our products or partnership. Reach out - we're always open to a coffee or a chat. www.groundedgoods.com.au Claudine Fessey

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Recent reports on Coles and Woolworths pricing indicate repeated use of high-low pricing patterns. The examples include chocolates and Tim Tams which the report states frequently alternates between high and low prices. A notable listed example in the report is Cadbury Favourites which are $22 one week and $11 the next, with the cycle repeating over months. For those unfamiliar with High-Low pricing, this is a widely used pricing tactic that relies on a mix of standard and discount weeks. It combines price skimming and loss leader tactics, temporarily lowering prices during promotions to create a sense of urgency and drive store traffic. During “high” weeks, products are sold at their full, regular prices, while in “low” weeks, they’re temporarily discounted and promoted as “specials.” The goal is to keep consumers watching for deals and returning to their stores, often fostering a form of loyalty through regular promotions. This pricing model is not unique to Coles and Woolworths, as many large retailers use it. However, the lack of transparency in this pricing approach brings up concerns about consumer rights. Customers are unable to track price histories, leaving them unsure if they’re getting a genuine deal. Additionally, it remains unclear whether these price fluctuations reflect real supply and demand or if they serve to crowd out smaller competitors. The ACCC’s investigation into these pricing practices is attempting to clarify the prolific usage of such pricing tactics and their impact on consumer trust and spending.

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We thought we’d round out the debate about the normalization of retail spending in Australia following our recent post (https://lnkd.in/gfgHuuVA). Our analysis of demand over the past five years in non-food retail highlights clear divergence across categories. Household goods categories like hardware, furniture and electronics have had their COVID-19 boom and bust. However, recreational goods, clothing and footwear have seen elevated volumes per capita over the past five years and may see weaker volumes over the next year, unless innovation or fashion trends support ongoing demand growth. https://lnkd.in/g9rhdbMU

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“Gatekeeper has exceeded what we were hoping for.” Explore Clayton Utz's collaboration with Gatekeeper. From leveraging data analytics for actionable insights to standardising contract templates for consistency, every aspect of their strategy fosters a robust supplier ecosystem and gives the business more control. Find out more in our joint case study: #LegalInsights #SupplierTransformation #GatekeeperPartnership https://lnkd.in/e-sMPsfv

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Really informative report from Anna Forster (The Purpose Agents) and Rosalea Catterson (Power Retail), highlighting some of the most powerful social and environmental initiatives in the Australian Market. As always, it’s great to see Reebelo getting a mention alongside various prestigious brands (kudos to our team in AU 🇦🇺), but most importantly I love this form of shared-learning. As sustainability is a topic we are all responsible for, any examples of best practice can help us address it more proficiently as a collective 🤝 𝐅𝐚𝐬𝐭 𝐅𝐚𝐜𝐭: 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐢𝐬 𝐨𝐟𝐭𝐞𝐧 𝐭𝐡𝐨𝐮𝐠𝐡𝐭 𝐭𝐨 𝐛𝐞 𝐚𝐧 𝐞𝐧𝐯𝐢𝐫𝐨𝐧𝐦𝐞𝐧𝐭𝐚𝐥 𝐢𝐧𝐢𝐭𝐢𝐚𝐭𝐢𝐯𝐞, 𝐛𝐮𝐭 𝐭𝐡𝐞𝐫𝐞 𝐚𝐫𝐞 𝐚𝐜𝐭𝐮𝐚𝐥𝐥𝐲 𝟒 𝐟𝐚𝐜𝐭𝐨𝐫𝐬 𝐨𝐟 𝐬𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐰𝐡𝐢𝐜𝐡 𝐚𝐫𝐞 𝐚𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐥𝐞 𝐭𝐨 𝐞𝐚𝐜𝐡 𝐚𝐧𝐝 𝐞𝐯𝐞𝐫𝐲 𝐯𝐚𝐥𝐮𝐞-𝐜𝐡𝐚𝐢𝐧: 1. Environmental - Responsible use and management of natural resources.  2. Economic - Ensuring equitable distribution of resources & opportunities. 3. Social - The wellbeing and quality of life of individuals and communities. 4. Technological - Using tech to support human wellbeing & sustainability. Extending the useful life of the products we consume ticks every one of those boxes in various ways, hence why I’m such an advocate for sustainable user-ship. Whether you choose to buy new or refurbished products, there are various things you can do in order to make your use-cycle more sustainable. Download the full report below. #sustainability #circulareconomy #bestpractice #innovation #circularity #information #sharedlearning #technology #usership #reuse #impact

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With every dollar counting more than ever, the drinks Aussies choose—and the ones they leave behind—will transform the beverage aisle overnight. Understanding why some drinks are flying off shelves and others are grounded is how you’ll keep your brand relevant. If you want to know which drinks are dropping into trolleys and which are being left behind, join us for our 30-minute webinar, How to DRINK your way OUT of a RECESSION. In this live fast-paced session, you’ll discover: 💰 How consumers are reshaping their beverage shopping habits—and what that means for your brand 💰 The beverage categories most vulnerable to the rising cost of living—and those that are thriving 💰 Why stockpiling might be your new best friend—and how to leverage it 💰 The recession-proof drink categories—and the ones you should worry about 💰 What’s happening with brand loyalty in the beverage sector and how it could impact your strategy 💰 If consumers are sticking with what they know or are open to new options 💰 The “nice-to-haves” that people are and aren’t still buying Webinar Details: Date: Wednesday 18th September 2024 Time: 12.30 pm to 1.00 pm Medium: Zoom webinar (recording available for all registrants) If you haven’t registered yet, secure your spot here ⇒ https://lnkd.in/gaGVzYG2 Feel free to share this with your team—they won’t want to miss these insights, either. Looking forward to seeing you there! P.S. I’m especially excited to have Morgan Loveridge on our panel. As Marketing Manager Future Brands at Suntory Beverage & Food APAC, Morgan specialises in brand management and innovation. You won’t want to miss hearing her perspective! #fmcg #consumerinsights #consumerbehavior #beverageindustry #beverages

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𝐖𝐄'𝐑𝐄 𝐋𝐈𝐕𝐄 𝐈𝐍 𝟏𝟎 𝐌𝐈𝐍𝐔𝐓𝐄𝐒! There's no time left to add this event to your calendar... 𝑠𝑐𝑎𝑛 𝑡ℎ𝑒 𝑄𝑅 𝑐𝑜𝑑𝑒 𝑡𝑜 𝑐𝑟𝑜𝑠𝑠 𝐿𝐼𝑉𝐸 𝑡𝑜 𝑡ℎ𝑒 𝑤𝑒𝑏𝑖𝑛𝑎𝑟 𝑖𝑛 𝑟𝑒𝑎𝑙 𝑡𝑖𝑚𝑒! Join myself, Brian Walker, my colleague, Anastasia Lloyd-wallis and Ben Gilbert from Jarden as we unveil the top 12 Australian retail trends you need to be prepared for in 2025. And you'll walk away with a complimentary copy of our 2025 Australian Consumer & Retail Trends whitepaper - a day before it publishes to everyone else! Plus, when you attend this webinar, we'll also give you a 20-minute complimentary consultation with either myself or Anastasia, our COO & Head of Insights at Retail Doctor Group. 𝐃𝐨𝐧'𝐭 𝐦𝐢𝐬𝐬 𝐨𝐮𝐭! 𝐒𝐜𝐚𝐧 𝐭𝐡𝐞 𝐐𝐑 𝐜𝐨𝐝𝐞 𝐨𝐫 𝐜𝐥𝐢𝐜𝐤 𝐭𝐡𝐢𝐬 𝐥𝐢𝐧𝐤 𝐭𝐨 𝐣𝐨𝐢𝐧 𝐭𝐡𝐞 𝐰𝐞𝐛𝐢𝐧𝐚𝐫 𝐋𝐈𝐕𝐄 𝐧𝐨𝐰! https://lnkd.in/gwgR5F3k 🗓️ 11 December 2024 🕒 3:00pm AEDT 𝑃𝑆. 𝑅𝑒𝑚𝑒𝑚𝑏𝑒𝑟 𝑡𝑜 𝑟𝑒𝑎𝑐ℎ 𝑜𝑢𝑡 𝑖𝑛 𝑡ℎ𝑒 𝑐ℎ𝑎𝑡 𝑠𝑒𝑐𝑡𝑖𝑜𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑤𝑒𝑏𝑖𝑛𝑎𝑟 𝑠𝑜 𝑦𝑜𝑢𝑟 𝑞𝑢𝑒𝑠𝑡𝑖𝑜𝑛𝑠 𝑐𝑎𝑛 𝑏𝑒 𝑎𝑛𝑠𝑤𝑒𝑟𝑒𝑑 𝑙𝑖𝑣𝑒! Ebeltoft Group The Retail Doctor Academy #AnastasiaLloydWallis #AusRetail #AustralianRetail #Benchmarks #BenGilbert #BlackFriday #BrianWalker #CEOCommunity #CyberWeek #DataDrivenRetail #Ebeltoft #EndOfYear #FitForBusiness #FutureOfRetail #Insights #Jarden #LimbicConsultant #LimbicRetail #Live #LiveWebinar #NeuroRetail #Neuroscience #Outlook2025 #RDG #RDGInsights #Retail #RetailCEO #RetailChristmas #RetailDoctorGroup #RetailExcellence #RetailGrowth #RetailInnovation #RetailLeadership #RetailManagement #RetailNetworking #RetailSentiment #RetailStrategy #RetailTrends #RetailWebinar #Webinar

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"Brand Reputation" is important to the valuation of your company ! We have already see the reputation of our two major supermarkets drop down "the rankings" in recent times aided by the various unfavourable supplier and consumer claims aired at the various government inquiries earlier this year. Now the ACCC is suing Coles and Woolworths over mis-leading pricing practices. If the ACCC claims prove correct, the integrity and working ethics of these two major Australina companies will be bought into question once again. Maybe time for the respective CEOs to review and reset the Culture Compass before further dilution of customer and shareholder confidence #Supermarkets #PricingPractices #ACCCsuing #Claimsmisleadingdiscounts #Reputationdamage #Impact????

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An excellent article on the increasingly complex role of directors and three key takeaways for directors to take into account new year. #boards #directors #governance

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Prediction. Franchise owner profitability will be under massive pressure in 2025. Watch out for our profitability workshops in February next year, to get in shape for the year ahead. Brisbane.Sydney.Melbourne. Details coming soon. #Profitability #FranchiseProfitability #smallbusiness #Franchise #Franchisebusiness #TheFranchiseAccountant #Cashflow #CashflowMgt

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This week, Australian retail sales have shown notable growth, primarily driven by inflationary pressures. The Australian Bureau of Statistics reported a 10.4% year-on-year increase in retail sales for May. Department stores led the way with a 5.1% rise, followed by cafes and restaurants at 1.8% and food retailing at 0.8%. However, clothing, footwear, and personal accessories saw a decline of 1.4% Inflation helps fuel strong Australian retail sales in May Regionally, New South Wales recorded the highest turnover growth at 1.6%, while Queensland experienced a 0.4% decline due to lingering effects from recent flooding Store openings 1. **Adidas** opened its largest Australian store in Adelaide's Harbour Town Premium Outlets, expanding its footprint due to increasing demand for international brands 2. **Zara** is launching a new store design concept at Burnside Village, 3. **Oporto** hit a milestone with its 200th restaurant opening, reflecting the brand's ongoing expansion 4. **Oz Hair & Beauty** plans to open 10 more shopfronts, capitalizing on the growing beauty and personal care market 5. **Betty’s Burgers** led a new lineup of food outlets at Sydney Airport, indicating robust growth in the food retail sector Store Closings: 1. **Accent Group** is ending The Athlete’s Foot franchise model, suggesting a strategic shift in its operations [oai_citation: Trends and Insights: - The retail sector in Australia is undergoing significant consolidation and restructuring, influenced by mergers and acquisitions such as Chemist Warehouse's reverse buyout of Sigma - The performance disparity between top-tier brands and smaller retailers is widening, with major brands like Bunnings and international labels continuing to thrive, while smaller businesses face challenges due to increased costs and economic contradictions-and-change Retail Doctor Group

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Marks & Spencer (M&S) has totally moved to value based pricing with their new “first price, right price” strategy. Over the past 12 months, they have seen 80% of sales at full price as a result of this change.  How did they do it?  Should Australian retailers do the same? What does the “first price, right price” strategy look like? Key elements of the M& S strategy: 1. 1 price to regain trust with their customers. 2. Significant cut backs on blanket promotions and discounting that dilute brand, value and price perception.    3. Better account set-up processes to improve the buying journey for all customers. 4. Improved customer loyalty programs to drive personalised promos and better bundle pricing deals. 5.New systems and data to devise and track meaningful customer & pricing metrics.  6. Investments in people to drive improvements in the areas of pricing, customer experience, data management and analytics. This is not the end of their pricing journey either: Going forward, they plan: data-driven price optimisation & personalisation. Online and app experiences and payment / invoice orchestration from supply to end user / modernisation of the entire technology infrastructure. They are using all of the above to feedback into their pricing strategy to deliver accurate customer pricing. Should Australian retailers consider moving to an end-to-end online value-based platform like M&S? Consider below M & S financial results since the “first price, right price’ strategy was launched: Sales increased by 5.2% to £402.8 million for FT ‘23 ending 30 March.  Food sales increased by 13% to £395.3 million for FT ‘23.  Profit before tax increased by 58% year-on-year from £453.3 million to £716.4 million. Yet another compelling case for a value-based retail pricing culture. 

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Aldi’s new value pricing strategy is capping prices for Coles and Woolworths and inadvertently keeping prices stable for shoppers. For example, a basket of 14 common items costs shoppers $51.51 when they buy at Aldi, compared to $68.58 at Woolworths and $69.33 at Coles. So all in all, Aldi is c.25% cheaper than Coles and Woolworths.  Aldi’s new change in strategy is based on value-based pricing principles: They are offering high-quality products at lower prices for bestsellers and/or items which they can procure at lower prices. The market impact of this strategy basically forces Coles and Woolworths to stabilise their prices. The federal government is also curious about the wide market price bandwidth between supermarket retailers. So much so that they have already committed $1.1 million to tracking supermarket retailer prices over the next three years. On top of this, the government is also calling for a mandatory code of conduct between supermarkets and suppliers, aiming for more transparent and fair pricing practices. Aldi supports the report’s findings, while Coles questions the survey’s methods, offering its own basket price of $59.35. Woolworths highlights its wide range of products and competitive pricing. Senator Nick McKim calls for more competition, criticising the small price differences between Coles and Woolworths.

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Is the weakness in retail representative of broader caution amongst Australian consumers? Recent data shows retail spending rose 2.5% in the March 2024 quarter, compared with household income which increased 5.1% and total consumption expenditure up 5.9%. Retail is reverting lower as a share of spending, now at 31.9% compared to its COVID-19 peak at 35.1%. For context, pre COVID-19, retail was 31.0% of all spending. Consumers are reallocating their spending and likely to do so further, which will impact retail sales growth over the next 12 months.  https://lnkd.in/gN__qrXM

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As NSW Treasurer Daniel Mookhey prepares to deliver next month’s state budget, our latest Business NSW survey reveals concerning trends in the economic landscape of the State. Business confidence has taken a significant hit over the past three months, with unemployment climbing to 4%, and small businesses feeling the pressure of ongoing economic challenges. Tina Angelidis, owner of Adora Handmade Chocolates, shares a sentiment many of our members echo: “The tough times are dragging on.” Her business, like many others, faces rising costs and changing consumer behaviors. Nick Basile of Panetta Mercato also highlights the severe impact of persistent inflation and rising electricity prices on his operations. It’s clear that the upcoming NSW budget must focus on measures that support our small and medium-sized businesses. Redirecting more of the state’s $37 billion procurement spend to local industries and jobs is a step in the right direction. However, we also need a fairer share of GST revenue to avoid burdening businesses with higher taxes. Our survey shows that 46% of firms have observed a decline in workers' productivity over the past two years, emphasising the need for strategic investments in staff training and technology adoption. At Business NSW, we stand ready to support our members through these challenging times and advocate for policies that foster a more robust and resilient business environment in NSW. Thank you to The Sydney Morning Herald and Matt Wade for helping up bringing the challenges facing the business community to the public debate. The full survey report is available here -https://lnkd.in/gppDfwc5

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