Consumer Still Slow to Spend

Consumers are still holding on tightly to their wallets and retailers are feeling the pinch. In the latest survey of CB Richard Ellis, retailers are experiencing weaker sales and leasing agents are likewise feeling the pressure on some of Sydney’s shopping strips.

According to Sydney Retail Market View, leasing agents are challenged to maintain occupancy levels in major shopping districts like Military Road in Mosman, Darling Street in Balmain, Campbell Parade in Bondi, and King Street in Newtown.

The report also indicated that some spaces remain vacant as consumers continue to feel the pinch.

Megan Lowder, however, is quick to allay fears. The CBRE retainl services senior manager said some precincts are performing much better than the others. She said food-based strips fare better and are more resilient.

Lowder added that consumers are more likely to spend on bars, cafes and restaurants than on fashion. The challenge, therefore, is for fashion retailers to come up with out-of-the-box strategies to attract more customers.

Some food establishments are also pressured to do better. Footpath dining has been recently removed from Oxford Street in an effort to increase more dine-in customers.

Another trend is that consumers are more likely to spend on overseas trips.

In the face of tightening purses, retailers need to beef up their operations to get more sales.