Press Release 13 October 2011
Commerce Ballarat Expresses Concern for Regional Businesses with new VLine Initiative
Regional businesses are being asked to register an expression of interest to take part in an initiative that VLine insists is designed to bring metropolitan shoppers to our regions.
If this is the intent of the program to run during November and December why are metropolitan businesses being included?
Most regional areas have a large proportion of commuters travelling to Melbourne each day, for their VLine ticket to offer them discounts at metropolitan stores during the Christmas period can only harm our regional businesses.
Commerce Ballarat would fully support an initiative that would promote regional areas to Melbourne shoppers.
For more information please contact Commerce Ballarat on 5333 3233 or email info@commerceballarat.com.au
Media Release
A super rate of economic recovery
A SURGING share market and a possible interest rate cut has buoyed the spirits of householders and investors. The share market added $57 billion in value this week to close at its strongest level in two months, in a major boost to the investments of the nation's superannuation funds. And with underlying inflation now running within the Reserve Bank's target band of 2-3 per cent, most analysts are tipping its board will order a 25 basis point cut from the current 4.75 per cent cash rate when it meets on Melbourne Cup day - the first interest rate cut in two and a half years. It may not stop there, with some tipping a follow-up cut before Christmas in a big boost for households and retailers ahead of the Christmas season. But not all agree. The Commonwealth Bank believes the central bank will sit tight after European leaders pulled back from the brink in the last 48 hours, agreeing to relieve debt-ravaged Greece of 50 per cent of its liabilities to banks and other financial institutions. Markets around the world continued to rally in the wake of the European rescue, with solid gains. Austock Securities senior client adviser Michael Heffernan said Australian equities had already absorbed the positive sentiment and had then throttled back. "We already had a big increase yesterday afternoon about the positive (news) to come out of Europe," he said.
"The momentum and sentiment are decidedly different from what we'd seen a month ago ... the mood is buoyant." The September CPI figure of 0.3 per cent growth in underlying inflation appears to have given the Reserve Bank the room it needed to use monetary policy to assist with economic growth. But the Commonwealth Bank's Global Market Research said: "We are expecting rates to remain on hold following Tuesday's RBA board meeting." Recent data from the US has also added to a better global outlook, which may help convince the Reserve Bank that global conditions are rebounding. However, UBS's analysts believe the cash rate will be cut this week, saying "a more subdued outlook, still cautious consumer, and ongoing risks around Europe mean the RBA has room to edge rates back towards 'neutral' in November."
Four key steps to success for tomorrow’s retail leaders
Retailers need to do more than just reach out to customers with social media, argues David Bowie from business intelligence vendor SAS. Instead they must learn to gather lots of information about customer behaviour and put it to work.
The retail world is fast changing. Australian customers no longer spend long hours at the shops examining goods before purchasing. Today’s savvy customers are embracing the Web and their smart devices to explore, compare, purchase and critique everything from the latest fashions to groceries and home appliances.
With the fast pace of advances in technology, the day when consumers use their webcam to simulate the in-store experience, receive individually customised promotions or even design their own products for retailers to stock is not that far away. Declining brand loyalty, the urge to save in a tough economic climate and the rampant use of new channels to purchase products, are pushing the boundaries for retailers and forcing them to rethink their existing strategies and brand management practices. Future retail success in this environment will depend on four critical success factors.
1. Rethink growth strategy
As more people shop online, retailers need to shift their focus from same-store sales that yield little to 'same shopper sales’ and reach cross-channel customers with a more tailored approach. Retailers must clearly demonstrate value and offer current products, reflecting local demographics and tastes.
2. Accelerate brand strategy
With a growing trend in private label and exclusive products, retailers have greater control over their brands and are able to differentiate themselves, while enjoying higher margins. Growth and profits will eventually depend on increasing shopper frequency and offering a wide product range through multiple channels at the right time.
3. Keep a focus on the customer
Retailers can enable multi-channel browsing to aid customers’ buying decision by having a unified strategy for social media and mobile devices. To stay current, retailers need to be present in the channels that consumers patronise, listen to and engage them where they are most receptive, and provide them with personalised pricing and promotions.
4. Implement analytics infrastructure
Retailers capture large volumes of data within the enterprise and from other channel sources and this data has grown exponentially. Consumers are sharing more data as well - preferences, opinions, tastes and current location. Using customer, merchandise and operational analytics businesses can access timely, relevant and useful decision making data across all customer channels. Retailers that analyse this data to better understand, engage and react to customer needs will win the battle in the marketplace.
Businesses must remember that each of these factors needs to be aligned with strategic goals. It is relatively easy to establish a social media channel to communicate with customers, for example, but it is a wasted effort unless it is focussed on improving customer loyalty and sales, increasing profit margins and inventory turnover, and improving cash.