State of the trade: How’s retail performing?

Do you operate a retail lease on the Gold Coast? How's business going? The latest retail trade index from the Australian Bureau of Statistics was released on 4 November, and it indicates that business went up by 0.4 per cent nationwide in September. On top of this, trend estimates show that turnover is 3.7 per cent higher than a year before!

That being said, we're sure you always find room for improvement. Anyone seeking to lease commercial property on the Gold Coast likely sees good opportunities for business expansion on the back of these retail figures as well. It's timely then, that the Roy Morgan State of the Nation report directly addresses this sector.

CEO of Roy Morgan Research Michele Levine delivered the report on November 24 and highlighted several key issues within the retail sector that commercial lease operators will want to have a look at.

'Things' are what we love

Ms Levine stated that as a country, we spend more than $100billion every year on 'things'. This is anything from furniture and Xbox consoles to fashion and jewellery to pet food for your loving cat. Together we purchased 1.1 billion separate items, with the following breakdown of exactly what Australians purchase in any given month-long period:

• More than half of us (54 per cent) buy clothes
• 24 per cent purchase hardware, plants or other home building and crafting equipment
• 22 per cent buy shoes
• 21 per cent buy stationery while 17 per cent buy books
• 16 per cent and 14 per cent respectively buy media (music, TV) and toys

So we've clearly set out our retail priorities. It's something that anyone with an office lease along Surfers Paradise might want to capitalise on, shifting their marketing or stock to fit these trends.

We shop online – but we shop local

It's no secret that technology is taking over – just check out how we think broadband might benefit Gold Coast commercial property. We're also spending more online, with Ms Levine noting that internet-based retail turnover increased by 9.7 per cent between the year to June 2015 and the prior 12 months.

Many people's first thought is that this harms local business, but it appears that 72 per cent of Australia's entire online spend flows back through companies based here. It doesn't have to be all online-only stores, either. Roy Morgan statistics show that 34 per cent of the internet retail market is made up by online branches of bricks and mortar stores. Anyone that already own retail real estate in Surfers Paradise might be able to boost business further with this type of expansion. 

Harness the power this Christmas

With all of this and more, the Roy Morgan retail report is good reading for anyone that owns commercial property on the Gold Coast, especially now that the festive season is here. The Australian Retailers Association (ARA) anticipates that $46.7billion is going to be spent this Christmas season, with a 4.2 per cent increase in business done here in the Sunshine State. 

On top of this, $2.8billion alone will be spent online. It's no secret that we love to shop, but these increases are something that retailers will really want to make the most of – even now.

"While the week before Christmas is traditionally the biggest shopping week of the year, there's plenty of consumers who like to be prepared and get in early, with a good deal of Aussies starting to tick items off their Christmas lists from mid-November onwards," stated Russell Zimmerman, executive director of the ARA.

We can't boost your sales for you, but we can help you find excellent commercial real estate on the Gold Coast. Get in touch!