How to Assess the Potential of a Retail Market
The global retail industry is highly competitive and mature. However, the growth of the market is fueled by developing countries. For example, countries like Singapore are popular shopping destinations for tourists, bolstering the demand for fashion, apparel, and electronics. In some countries, consumer spending accounts for over two-thirds of GDP Rarbgweb.
To assess the potential of a location, you can divide the average annual sales of the local market by the proportion of that market you’re aiming to capture. Various factors must be taken into account, such as the population size, average household disposable income, and the type of retail store. These factors will be used in estimating the size and shape of your potential market Muctau.
Market segmentation helps you to identify and target specific customers. Based on the characteristics of your customers, you can develop a custom marketing mix. For example, you can offer discounts on products and services that appeal to specific demographic groups. This way, you’ll be able to appeal to a certain audience and maximize your profits Newshunttimes.
Retail markets have been in existence for centuries. Some of the earliest retailers were itinerant peddlers. Over the years, retail shops have evolved from simple markets to sophisticated shopping malls. Nowadays, larger retail chains have enormous buying power and are able to pass on savings to their customers in the form of lower prices. They also offer credit, delivery, and advisory services uplikes.org.
Australia has seen a rebound in retail sales this month, up 12.0% yoy in June. This is a significant increase from the previous month when sales were down by nearly 5% yoy. Conversely, the UK recorded a decline in retail sales this month of -5.8%, while the US saw a growth of +8.4% yoy, though it still trailed Australia in overall growth. Almost all retail categories saw growth in June compared to May 2021, with Clothing and Footwear and Eating Out showing the most significant yoy growth roobytalk.com.
The increase in retail sales is likely the result of positive employment data, with unemployment at a 48-year low and wage growth below inflation this year. This is encouraging news for Australian retailers, but the Reserve Bank of Australia has indicated that it may raise interest rates later this year. This week’s retail data did not adjust for inflation, so the results may not be entirely accurate.
Despite the recent slowdown, Australian consumers are still spending, with the retail sector reporting another healthy increase in July. According to the Australian Bureau of Statistics, total retail turnover increased by 1.3 percent in July, a much higher rate than expected. Analysts had predicted a 0.3 to 0.4 percent increase.
Although Australian retail sales are currently rising, the outlook for retail isn’t as bright as many may think. The latest Quarterly Retail Forecasts report from Deloitte Access Economics warns that the outlook for the industry is more grim than current figures would suggest. The report shows real retail spending rising by 5.4 per cent over the year to June, but the outlook for the industry is much more cloudy than this.