How Business Sellers Can Make the Most of Australia’s Early Christmas Shopping Surge
How Business Sellers Can Make the Most of Australia’s Early Christmas Shopping Surge
As Christmas fast approaches, Australians are diving into the festive season early, with more than half of shoppers (53%) having already bought gifts by mid-October. This trend spells promising news for retail and other consumer-focused businesses.
If you’re planning to sell your business in the next 6-12 months, now’s the time to leverage this surge. A strong holiday season not only boosts revenue but also highlights your business’s potential to future buyers.
1. Get to Know the Early Shopping Trend
This year, According to Roy Morgan's research for the ARA, Australians are forecasted to spend $11.8 billion on gifts, a $1.6 billion jump from last year. The average shopper will spend $707 (up from $646), with those aged 35-49 leading the way, spending an average of $965 each. With peak season spending projected to hit $69.7 billion, a 2.7% rise over 2023, smart business owners can tap into this growth to boost their attractiveness to buyers.
The early shopping trend is driven by a focus on value, as consumers aim to get the most out of their money amid rising costs. Many Aussies are now carefully planning and researching their purchases, looking for the best buys.
Events like Black Friday and Cyber Monday are also playing a bigger role, with Australians expected to spend $6.7 billion during these sales, up 5.5% from last year. With brands already promoting these sales, it’s the perfect time to get your business in front of eager buyers.
2. Key Opportunities for Sellers
For those planning to sell their business, the increased holiday spending can boost revenues and enhance financial metrics—both key factors in making your business more appealing to potential buyers. Here’s how you can capitalize on this momentum:
Maximize Holiday Sales: Make the most of the season by driving more sales and increasing your net profit. This profitability boost can help elevate your business’s valuation when it’s time to sell.
Focus on High-Performing Categories: With strong demand for food, gifts, and festive items, tailor your offerings to match. Highlight products or services in these categories to enhance cash flow and show your profitability to potential buyers.
Optimize for Online Shoppers: More Aussies are shopping online than ever. Make sure your website is ready to convert visitors or leverage platforms like Amazon, eBay, and Facebook Marketplace to drive additional sales.
3. Show Off Your Business’s Strength
Holiday season performance is an indicator of a business’s true potential. Showing strong financials during this time demonstrates your brand’s ability to thrive under high demand, which can be a powerful selling point during negotiations. Buyers want to see your business’s resilience and ability to drive high sales in peak periods.
Prove your customer loyalty, seasonal adaptability, and profitability—all factors that will go a long way in positioning your business as a top choice for buyers.
4. Know the Market
If you are planning to sell and want to capitalise on this season. You need to know the business sales market and what businesses are currently for sale. Setup alerts and view some of the most popular hospitality and retails categories.
5. Plan Ahead for the New Year and Beyond
While the holiday season is about maximizing sales, it’s also an opportunity to set the tone for a successful new year. Showing the potential for future growth is key when selling. Strong holiday performance acts as a “test run,” proving your business can thrive year-round.
Take advantage of the current shopping momentum, and position your business for an attractive sale. For those in retail or hospitality, now’s the time to make your business shine—not just for holiday profits, but to set the stage for a strong settlement when it’s time to sell.
Key Dates:
- Black Friday: 29 Nov 2024
- Cyber Monday: 2 Dec 2024
- Australia Post Parcel Cut-off Dates: With the same state: 20th December, Interstate is starting 16th December - see full Australia Post List.
As always, consult with professionals like an accountant, solicitor, and business broker when preparing to sell your business.
Tags: selling exit strategy tips small business
