Retailers brace for crucial six-weeks

Retailers are bracing for a crucial holiday spending season after a turbulent year, with the upcoming six-week window, beginning with Black Friday sales, accounting for up to two-thirds of a small retailer's annual profit.

BDO head of retail Salim Biskri said that after a challenging year marked by rising costs and shifting consumer habits, retailers face the task of maximising their festive campaigns.

“It’s been a tough year for retailers, making a successful holiday period campaign all the more crucial,” Salim said.

“Success will hinge on embracing technologies and automation to streamline operations and handle the surge in online orders.”

With uncertainty surrounding interest rates and a rise in the cost of living, Salim said there was already a noticeable trend of budget-conscious shoppers turning away from luxury brands.

“A noticeable new trend is that fast-fashion brands like Temu and Shein are taking a bigger share of those festive season sales.

“This is driven by drop in discretionary spending and therefore those ultra-cheap fast fashion brands prevailing as more customers are expected to celebrate this festive season on a smaller budget.” However, Salim also urged retailers to be cautious with their online systems.

“With Black Friday kicking off an intense shopping period, retailers must be acutely aware of the rising risks to their digital security,” Salim said.

“As online shopping continues to dominate, particularly during major sales events like Black Friday, cybercriminals are increasingly targeting retailers handling large volumes of transactions.

“The sheer volume of online traffic and the rush of deals create prime opportunities for hackers to exploit vulnerabilities, whether through data breaches, payment fraud, or ransomware attacks.” Salim said that for retailers, the financial and reputational costs of a cyber-attack can be crippling, not only impacting consumer trust but also disrupting operations at a time when every sale counts. “It’s important for businesses to bolster their cybersecurity protocols, invest in robust encryption and fraud detection systems, and train staff to recognise potential threats.

“With the stakes higher than ever, a proactive approach to cybersecurity will be key to ensuring a smooth and secure holiday shopping experience for both retailers and consumers alike.”