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The top factors underpinning a full recovery of the retail sector

Adrian Flores
Adrian Flores
03 March 2021 1 minute readShare

A new survey has revealed the major factors that retailers believe will determine how quickly the industry recovers from the coronavirus crisis.

A CouriersPlease survey asked 172 retailers what they think the industry needs to bounce back once social restrictions are removed.

The majority of retailers (42 per cent) believe an effective treatment or vaccine is needed, while 34 per cent said further government assistance to help them pay employee salaries, such as an extension of the JobKeeper scheme.

Twenty-seven per cent of retailers said tax incentives from the government would help the industry recover faster, while 17 per cent believe further cashback incentives from the government are necessary for the industry’s recovery.

When asked about their own recovery, a third (36 per cent) of retailers said they will be able to recover to pre-pandemic levels between July and December this year.

Just a quarter (24 per cent) revealed their recovery could be in July, while 13 per cent said their recovery would depend on restrictions lifting completely. Eight per cent said recovery would take place after 2021.

Further, the survey revealed that one-fifth (22 per cent) of retailers said a recovery would require more cash for consumers to help boost their confidence. Further, it noted consumer confidence fell by 27 per cent when social restrictions were enforced last year.

CouriersPlease chief commercial officer Paul Roper said the retail industry has a long way to go to recovery.

“While e-commerce has remained strong, many brick-and-mortar retailers were forced to close their doors last year. The end of JobKeeper in March, a slow rollout of the NSW government’s Dine and Discovery voucher scheme and continuing COVID cases across the country, including the recent spike in cases in Melbourne, are just a few of the factors that could lead to cautious consumer spending this year,” Mr Roper said.

“A number of support measures remain at retailers’ disposal, including the SME Guarantee Scheme and the instant asset write-off scheme.”

The top factors underpinning a full recovery of the retail sector
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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