Retailers can anticipate to see positive aspects in gross sales over the upcoming Easter weekend regardless of buying and selling in an surroundings hit by an financial storm.
The newest Easter retail analysis research by Capital Connect (a fintech enterprise funding division inside Connect Group) reveals that end-of-season gross sales, Easter-related promotions and college holidays all assist to drive an uptick in retail commerce over the Easter interval, though not all retailers will profit equally.
During a media presentation of the research on Wednesday, Capital Connect CEO Steven Heilbron mentioned: “A powerful Easter buying and selling season will give South African retailers some respite in a 12 months [wherein] they’re dealing with an ideal financial storm, with excessive unemployment, weak financial progress and the return of inflation impacting shopper and enterprise confidence.
“Agile retailers that spend money on promotions, new choices and extra various product ranges will probably be greatest positioned to revenue from this buying and selling interval, particularly in the event that they reap the benefits of the chance capital at their disposal from various lenders.
“Given the pressure on the consumer’s wallet and the steep competition in the market, retailers will need to be smarter, faster and more creative than the rest to win the consumer’s business.”
Between 2010 and 2019, basic retailers reported substantial returns in gross sales as a result of Easter season. This upward development surged considerably in 2020 because the pandemic had simply hit South Africa and customers had been stockpiling important items.
According to the research, retailers can even anticipate to see positive aspects this 12 months as volatility over the Easter gross sales season continues to be impacted by the pandemic.
Many individuals have misplaced their jobs and or are battling hovering inflation. The research reveals that many customers await the Easter gross sales season to bulk-buy and replenish on requirements given the discounted charges and merchandise being marketed as a particular providing.
Professor and analysis director at Unisa’s Bureau of Market Research Carel van Aardt explains that Easter retail buying and selling patterns differ considerably from these seen over Black Friday and the festive season, when customers spend extra on big-ticket objects like electronics and home equipment.
He says the recent sellers over Easter sometimes embody high-volume items like meals, alcoholic drinks, confectionaries and garments.
“To enhance margins and gross sales, retailers want to essentially perceive what the shopper needs and ship it as shortly, cheaply and with the best doable high quality degree. They additionally have to innovate and diversify.
“Smart advertising executions and in-store experiences such as ‘shoppertainment’ are key to creating a wow factor that brings shoppers into your store.”
General advertising and marketing supervisor at Connect Group Sumay Dippenaar equally believes that Easter is the subsequent peak buying and selling season for a lot of South Africans after Black Friday and the festive season.
“There are generally loads of promotions and specials around this time of the year, with lots of advertising about these promotions. There is always some ‘shopper excitement’ that’s created, also known as ‘shoppertainment’, with Easter Egg hunts and bunnies walking around in shopping malls.…” says Dippenaar.
She notes that customers are extra susceptible to purchasing high-end items resembling laptops and cellphones over the Black Friday weekend and purchase a broad vary of largely expensive objects over the festive season. However, they have a tendency to go for cheaper objects resembling end-of-season items, desserts, linen, and clothes over Easter.
“Because Easter is known as a time to spend with family and friends consumers are buying more party and celebration goodies than usual, like confectionaries and alcoholic beverages.”
Dippenaar provides that retail sellers resembling supermarkets, liquor shops, textile, clothes, and footwear shops can anticipate to achieve probably the most and have an excellent Easter commerce total.
“It’s important to note that retailers will drag out the Easter season with promotions and specials for as long as they can. So we can expect the Easter trade to last even until the end of April. A good example of this is the [Checkers] Heydays specials that will stretch beyond the Easter festivities, having a positive impact on sales.”
Listen to Fifi Peters’s interview with Independent analyst Chris Gilmour on the retail sector (or learn the transcript right here):
Palesa Mofokeng is a Moneyweb intern.