Failing retail in OZ "Bleak outlook for Australia's retail sector"
Keeping a business afloat is never easy but data and analytics provider illion has revealed a bleak outlook for the sector with 54,992 businesses going bust in Australia in 2017-18. That’s a 12.7per-cent increase in the number of failed businesses compared to the year before. Retail has been the hardest hit with a failure rate of one-and-a-half times higher than the average of other sectors.
In a survey of 1,000 small business operators by the American Express and RFi Group found one in three businesses fear they will shut their doors in the next three to five years. That numbers become significantly more concerning for retailers in fashion (43 per cent) and food (53 per cent). Unsurprisingly, among the biggest challenges for small businesses are rising energy bills, increasing overheads, payroll costs and struggles to secure finance.
The key to staying afloat? Retail consultant Roger Simpson says the success of a retail business all comes down to how they deal with customers and how they differentiate themselves.
"Retailers need to invest in service and... make it an experience for the customer when they come in” he says.
"You've seen it over and over again with retailers that have failed, they stopped investing in really great people and training them in really understanding that would be something to help them survive in the future."
Luckily for you, our latest article on providing good customer experience will get your customers coming back for more!
This article was originally featured on ABC online.