How to stay ahead in a struggling retail market

The struggling retail market has had a tough few years with many iconic Australian retail brands failing under the ongoing pressure.

With the growth in retail almost flat-lining over the last 6 months some of the industry greats are seemingly dropping like flies. Big name stores and businesses such as Ed Harry, Toys ‘R’ Us, Roger David, and Avon have closed their doors in over the past year.

The companies site a variety of reasons for the downturn, including stiff competition from international online retailers, rising levels of business debt, overzealous growth strategies, and high fees and freight costs.

The retail industry is becoming increasingly complex with consumers demanding more for less, and customers fully aware of all potential alternatives before they even walk in your door.

Local Sunshine Coast retail battle

You only have to look around the retail areas of the Sunshine Coast to see how the retail market in Australia is battling through the end of 2018 and into 2019. In the local Coolum area alone we often see businesses pop up only to disappear a few months or years later.

The competition is tough and fixed costs like rent and other overheads don’t go away just because the rain has set in and kept the customers at home.

To ensure your retail business can thrive during the lean times as well as through the boom you need to keep a constant eye on how it is fairing financially, as well as putting in place systems to ensure long term sustainability.

As a small business owner, you are often expected to be an expert in the huge range of diverse tasks which make the day to day operation of your business possible. Most small business retail shops, for instance, require skills of an accountant, purchasing manager, human resources, payroll clerk, bookkeeper, cleaner, window dresser, and so many more just to open the doors.

It’s no wonder many companies get distracted with the day to day and fail to plan for the future.

Smart financial planning

Investing in expert help for some of these tasks is just smart business, whether you’re a startup or if you’ve been around for years. Outsourcing the jobs which are not within your skillset free’s up your time to concentrate on what you’re great at.

A good accountant, for instance, can help your business to plan for the short term, as well as where you want to be in 5 or 10 years time.

Great accounting advice doesn’t just involve how to best negotiate the taxation system, it can also include creating strategies for business growth, investing in marketing, and a detailed ongoing analysis of each aspect of your business.

It’s easy to get snowed under with the practical tasks needed to run your retail business, which is when problems can emerge. Your accountant can provide an analytical review of the business, often identifying issues you mightn’t have noticed, ensuring your forecasting and profitability is enough to cover rent and other ongoing overheads.

If you’re committed to ensuring your retail business thrives, not just through the summer but in the long term, we can help. Speak to our experienced Sunshine Coast accountants at 5471 7077 or complete our online accountant appointment request today.