Retailers have fairly merry Christmas

Photo specialists around Australia contacted by PIN have reported good-toexcellent pre-Christmas sales.

“December was a good month with customers expanding their photographic purchases,” said John Ralph, Erina Camera House. “The increase was noticeable both in-store and online. They still were after a bargain and the percentage profit took another dive.

“Best results were obtained by emphasing that all imported products would cost the suppliers more, and this should lead to higher prices. Consumers were advised to buy now rather than risk missing out after Christmas.

Looking to 2009, he said, “I think that especially with the influence of declining dollar and on-line trading, the camera margins will continue to decline. The best chance for specialty to benefit is to focus on a smaller range of cameras but a larger range of accessories – bags, batteries, filters, cleaning kits, cards and extended warranties.

“Also look at ways of reducing current expenses without reducing the service component of our stores.”

On the other side of the continent in Fremantle, WA, Luke Valentine, Valentine's Camera House also had a good December:

“Valentine's Camera House Fremantle fared pretty well for Christmas.

“Total dollar value of sales was almost exactly the same as last year. Taking into consideration the price erosion of cameras over the year, we consider this a very good result. The October-December quarter paints a much rosier picture for the strength of the WA economy. Bearing in mind that 2007 had a slow November due to the Federal election.

He said that compared to 2007, digital cameras were up 32 percent in unit sales and DSLRs were up 12 percent.

“Total revenue for the quarter is up around 8 percent,” he said.

“By the end of the second week in December, we had major doubts that we could achieve this result, as sales were sluggish. However, whether through the government's stimulus package, or just last minute Christmas cheer, there was a major turnaround in the last two weeks of the month.

“Fremantle is a major tourist centre for WA, so after Christmas sales have continued to be strong and profitable for us. There is evidence that there are still a lot of tourists from both overseas and interstate with dollars to spend.

“I will reserve my judgment on 2009 until I see what January and February turn out like.”

Digital Camera Warehouse, with it's hybrid online-storefront model, broke records in December. Business development manager Sharyn McKissock reported:

“December proved to be a record month for us. We doubled December 2007 sales results, but the month did amble for a bit.

“We were in full swing from about December 9 (I wonder if K Rudd had anything to do with that?). Sales continued strongly after Christmas Day and have remained steady into January.

She also ventured some predictions for 2009:

“January sales will start to slow from Australia Day and will be quiet through late March/early April. People will have received their Christmas credit card bills, they may not have received an annual bonus, and school fees will need to be found.

“Couple this with the increase in prices, and the release of new models and I think the first quarter will be consistent but ‘nothing to write home about’.

“April to June will see an increase over the previous quarter. By now I think people will need to start spending, and with decreased petrol prices and interest rates, they will realise they have the money to buy – even with increased prices.

“July to September will show an increase over last year, and October to December will be better than we just experienced!”

Phil Gresham, Fotofast, Brisbane, said Christmas sales were up 7 percent compared to 2007.

“Digital compact was almost nothing, no digital frames to speak of, both were good last year. So what was up was all of our creative category, print volume way up also in the larger sizes. Canvas was crazy.

He attributed much of his success in the creative products to new Oblo kiosks, with their selection of 240 templates.

“Everything in our latest catalogue was able to be ordered at the kiosk, enabling more to be ordered, faster and easier, with lots of fun and very little support needed by our team,” said Gresham.

Meanwhile, larger retailers reported mixed results.

Myer chief executive Bernie Brookes said the department store had experienced “disappointing” sales overall.

“Our total Christmas business is behind last year’s, so it’s not been a good Christmas. It’s been below average and sort of in line with expectations of current economic and credit crunch crises,” Brookes said in an interview with Business Spectator.

One bright spot was portable consumer electronics, including digital cameras, he said.

“We’re dealing with a consumer that’s really finding it difficult to part with their money. We’re seeing a consumer that’s probably got more disposable income with better interest rates and lower petrol prices and the Government’s stimulus, but they’re worried about the go forward from employment levels.

“So that means that it’s going to be a very tough trading environment going forward and, you know, you’ve got to be right on your game in everything you offer to survive in the current market.”

Harvey Norman said sales for the 28 days to December 21 were up 8.7 percent on the previous year.

Harvey Norman’s chief operating officer, John Slack-Smith, told The Sydney Morning Herald that the real test for the economy will come this quarter.

“There's a great sense of the unknown," Slack-Smith said. "That's the key question for all of us. The middle of January to the end of March will be a critical period – not just for us but for all retailers.”