Sunday 22 May 2016

Speaking From Our Wallets

Trader Representatives get a pretty good picture of  trader moods and it usually ranges from measured interest when times are OK to almost manic anger when times are tough.

Traders speak through their wallets and there is nothing wrong with that. We also generally react to today’s business with little sympathy for long term trends. We can contend with a poor day when the next day shows hope of an improvement but there are times when that seems a remote possibility.

The Federal election appears to be having a negative impact on retail sales right now. Data (ANZ – Roy Morgan Consumer Confidence Index) tells us that in fact Federal elections don’t impact greatly on longer term consumer confidence although there may be some deferment of spending until after a poll.

Trying to be logical and understanding when your takings are down, and there are bills to pay, is not easy. Venting with your Trader Representatives and your neighbours is probably a healthy activity but maybe we need to keep that from our customers – they have enough to worry about.

The Chairman of Ibisworld recently stated that shoppers tend to take a “wait and see approach” during elections and that seems to be what is happening right now. So, in turn perhaps we traders need to “wait and see”. Next Thursday’s announcement of a special promotion at QVM will be a very interesting ingredient in the whole picture.

Editors Note: A couple of days ago the Managing Director of Coca Cola Australia said - “There’s probably no doubt that an election and a prolonged election campaign doesn’t help either – it’s very common in most consumer businesses that that adds to uncertainty.”