How retailers are limbering up to cash in on red-hot holiday season


  • More consumers are expected to splurge their cash this holiday season due to pent-up demand.
  • Just like last year, e-commerce platforms would potentially steal the show this time as well.
  • Retailers will also harness the power of cheap credit being made available by BNPL players to increase their sales.

The last quarter of the year is arguably the biggest one for retailers. With more consumers planning to splurge their cash on their favourite electronics, gifts etc. retailers are getting ready to make the most of this quarter, especially after a long year of dampened sales.

Christmas shopping

Image Source:  Michael Schwarzenberger from Pixabay

With Australia already started to unlock, the pent-up demand could potentially work as a catalyst for this quarter sales. Like last year, the e-commerce platforms would potentially steal the show this time as well.  As the shopping season is nearing, let us have a look at three ways in which retailers are gearing up to capitalise well on this opportunity, to make up for the low sales throughout the year.

Read More: 5 great value propositions for investors ahead of Holiday season

  1. Winning the price war

This is the time of the year when retailers go all-in to offer attractive deals and discounts. The holiday season is all about the dominance of lower prices and retailers won’t be letting this opportunity to go in vain by keeping high margins at the risk of losing customers.


All thanks to COVID-19, many retailers now have a well-established online infrastructure in place to implement date-driven pricing tactics, offering goods at best possible prices. This time also, retailers will focus on ramping up volumes at a lower price.

  1. Preparing earlier than ever

Retailers are expecting demand to pick up quite early this season, due to almost a year of pent-up demand. Preparing for the busiest season of the year is not an easy task. With most of the people starting to shop early, retailers would not want to get caught off guard due to insufficient infrastructure.

Bracing to improve technological infrastructure to handle the entire wave of customers with adequate logistics and storage infrastructure, is what retailers have on the cards. Not being able to fulfil orders this season could be a big opportunity loss for them.

  1. Offering multiple payment options

The COVID-19 pandemic has set off a swift transition towards digital payments. The Buy Now Pay Later (BNPL) industry has soared to new heights during the pandemic, offering micro finance services to consumers.

Retailers would be betting on BNPL players such as Afterpay and Zip Co to boost their sales multifold. During Christmas holidays, consumers generally end up spending more than they need with the availability of cheap credit, which could catalyse sales this year.

Bottom Line

This holiday season could be one of the very best retailers have had in a long time. The pent-up demand coupled with the enthusiasm related to the re-opening of the economy could help boost sales through both online and offline stores.

Retailers will also harness the power of cheap credit, being made available by BNPL players, to multiply their sales. Not to forget, things like adequate planning for inventory, logistics, etc. need to be taken care of to not let this opportunity go down the drain.

Read More: PM warns supply shortages to Christmas. Stocks to avoid for short term





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