A number of major sporting events have been in the headlines recently, from the Jeff Horn vs Manny Pacquiao boxing match, to the State of Origin Series and English Premier League side Arsenal are currently touring Australia.
In the coming months we will have the NRL and AFL Finals, the Australian Open tennis in the New Year and the Gold Coast will host the Commonwealth Games early next year.
Asides from providing great entertainment to the Australian public, these sporting events can also have a great flow-on effect to the local economy, including the retail industry.
For instance, Victoria alone receives an economic benefit of around $1.5 billion from all the major sporting events the state hosts each year.
While former Queensland Premier, Peter Beattie, has estimated that 2018 Commonwealth Games to be staged on the Gold Coast could deliver an economic benefit as high as $4 billion.
When a major sporting event comes to an Australian city, it brings with it players, broadcast media, journalists, promoters and fans, all of whom eat in the local restaurants, drink at the local bars and shop at the local retail outlets.
Although the benefits of these sporting spectacles to retail may only be in the short-term, they can provide a necessary sugar-hit during sluggish periods and result in retailers having to rely less on traditionally busy times of the year such as Christmas.
It is true that a number of these major sporting events require state and federal governments to provide bids and/or some level of funding, however, the positive economic impact of a successfully staged sports event greatly outweighs any cost that is associated.
The NRA hopes that Australia continues to try and attract major sporting events into the future, not only for this country’s undoubted love of sport, but also for the positive flow-on effect it can have for the retail industry.
Meanwhile, it has been revealed that Australians spent $22.3 billion on online retail in the 2016-17 financial year. Millennials make up the largest share of online shoppers, accounting for 48% and spending a monthly average of $182 online.
It is also reported that as many as two-thirds of consumers abandon their cart and do not go through with the sales transaction due to the high cost of shipping and if you are a bricks and mortar retailer you too will know that this happens in store, especially if the customer doesn’t receive the service, attention or their experience is tainted somehow.
Whatever the medium you choose to sell your products the golden rule still holds true, the customer knows best. In our experiences those retailers that best ride the many tides of our economic climate are those who focus on personalisation, customer experience and convenience. If you need any help refocusing your team, we are only a phone call away.
Have a great week.
Dominique Lamb, CEO.