Change the key to success

Bunbury retailers have been told to change the way they do business or risk lagging behind as consumers demand better customer service, a full range of stock, and after-sales protection.

Speaking at a seminar in Bunbury last week, Retail Traders’ Association WA executive director Wayne Spencer said shop owners had an opportunity to inject confidence in the struggling sector, where customer service levels were at an all-time low and consumers were being frustrated by a lack of value offers.

Retailers have approached the Bunbury Chamber of Commerce and Industries for guidance and support as they work on strategies to operate in the changing marketplace.

Chamber chief executive officer Andrew Horan said issues such as the high value Australian dollar, the increase in the level of consumer savings and the growth of online retail have affected the retail sector in the past 18 months.

‘‘At first glance it may seem that these issues are not able to be combated locally but retailers are showing their mettle and wanting to look at these and other issues that affect trade as opportunities to engage with the consumer like never before,’’ he said.

Mr Spencer’s frank assessment came after the latest Commonwealth Bank - CCI Survey of Business Expectations showed business confidence in the State’s economy suffered its third straight quarterly fall.

The survey found just 18 per cent of respondents believed the operating environment was good—the lowest proportion in more than two years.

Mr Spencer said, however, while retail sales had a bumpy start to the year, particularly for fashion, furniture, hardware and household goods, there was an opportunity for retailers to reconnect with customers by offering fast and individualised service, value add offers and a wide range of products.

‘‘Local retailers need to adapt to the changes around them,’’ he said.

‘‘The consumer does have the money but our savings ratio is highest in decades. People across the board have money, they’re getting rid of liabilities like credit card debts so an opportunity exists for retailers to bring the customer back in store.’’

According to the latest Deloitte Access Economics’ Retail Forecast, rising household savings rates has been a phenomenon across other developed countries, but the trend was more pronounced in Australia.

The Deloitte forecast suggested if the household savings rate stayed at current levels, consumer spending growth would match growth in disposable incomes ‘‘which would be a handy improvement on recent events’’.