Saturday, 27 December 2008

Post Christmas Retail Therapy - 27/12/08

If your addictive retail consumer habits did not quite reach a peak prior to Christmas, you may now be pacing the halls, that are decked with holly, wondering when you are able to add some more debt to your credit card... well it's only been one day of pause between spends.

Boxing Day Sales... known as one of the biggest single retail days of the year, it is anticipated that, just in New South Wales alone, $4.5billion will be spent in the annual post Christmas sales, commencing on Boxing Day. Just in case clients were holding off their purchasing until after Christmas, although according to an article in today's SMH.com $38 billion were spent in the weeks leading up to Christmas. A record amount in fact... it looks as though retail should finish the year reasonably when this plus the post-Christmas sales are consolidated, the actual figure is some weeks away, well in Australia anyway. Whilst this news appears to be positive the biggest hit to retailers will be their excessive and variable markdowns they were having weeks in advance of Christmas, impacting their gross margins and reducing their bottom line.

We wait and say. Looking at the 1000's of people waiting to pop into Elizabeth Street Sydney David Jones store yesterday, who would have thought things were tough. Where are they heading? Mainly to the women's shoe department where they will buy up designer brand names for incredible prices, Giorgio Armani, Prada, miu miu, Sergio Rossi..., accessories, manchester and men to the business shirt and plasma/LCD electronics department. Over in the UK, with some retailers slashing their prices by up to 90%, one woman lined up outside Selfridges from 2am Boxing Day morning to see if she could snag a CHANEL handbag at an incredible price.

Wasn't Boxing Day about 'boxing' gifts for those less fortunate? Somehow, like many things, the true meaning has been lost.

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Who's behind the MO DOWN

Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au