A new survey reports four out of five Australians will support local retailers ahead of big businesses in the next 12 months.
It’s good news for those small businesses and family enterprises, which prior to government lockdowns, represented 98 per cent of the 2.4 million businesses in Australia.
In September business insolvencies rose by 11 per cent and defaults increased by 23 per cent.
New research, however, reveals nearly 79 per cent of Australian shoppers will proactively support small businesses in their recovery in the next 12 months, by spending with them rather than with big businesses.
The findings were derived from a survey of an independent, nationally representative panel of 1002 Australians commissioned by parcel delivery service CouriersPlease.
The results were released ahead of November shopping events such as Click Frenzy, Singles Day, Black Friday, Small Business Saturday and Cyber Monday — opportune retail industry promotional days for those small businesses, who have managed to survive, to drive consumer spend.
According to the findings 87 per cent of consumers surveyed indicated they would actively preference local over global businesses to help stimulate economic recovery in Australia.
As part of the report, CouriersPlease also analysed the behavioural differences across the major states.
In NSW, where the total value of goods and services sold declined by 8.6 per cent this year, 90 per cent of survey respondents indicated that they will spend with local businesses while 81 per cent will proactively spend with small businesses over the next 12 months.
The debt-ridden Victorian economy is set to further shrink by $23.5 billion, compared with pre-COVID-19 forecast, with 79,000 fewer jobs over the next five years now forecast.In the state 85 per cent of Victorians plan to shop locally and 77 per cent will shop with small businesses to help the state recover.
Queensland is facing an $8.1 billion deficit and the State Government’s debt is set to rise to $101.9 billion by next June. Up to 87 per cent will shop with local businesses over the next year, while 78 per cent plan to shop with small businesses.
The lockdowns, social restrictions, closed borders, and travel bans according to Paul Roper, CouriersPlease Chief Commercial Officer, have directly and indirectly impacted the majority of small businesses.
“This month’s shopping events present multiple opportunities for local and small retailers to drive consumer spend and repeat purchases, particularly given the public’s willingness to change their spending habits in support of the small business retail sector’s recovery,” he said.
“Last year, Australian shoppers spent nearly $4 billion on Black Friday and Cyber Monday and with this year’s significant and continuing increase in parcel volumes, we expect online transactions to continue growing up to Christmas,” said Roper.
Roper encouraged retailers to enhance their eCommerce platforms. This included ensuring a seamless online transactin process in which stock levels were managed, customer experience was a positive one, multiple delivery options were offered and delivery partners maintained smooth and efficient delivery processes.
“This will help encourage shoppers to purchase with them, over global brands,” he said.