The Christmas season marks not only the peak sales period for the retail industry each year, but plays a significant role in shaping the 12 months that follow. The latest Xero Small Business Insights show just how prepared businesses are. The number of retailers who are cashflow positive – a key measure of profitability and potential for survival – has been rising in recent years, while the number of late payments to all businesses continued to fall during 2017.
Over the past several years, the number of smaller retailers with positive cashflow has ticked upwards as businesses bring in more cash than they spend. A total of 61.1 percent of retailers were in the black as of Christmas 2016, far above the 54.6 percent of all Australian small businesses, a sign of retailers’ relative financial health compared to the rest of the economy.
Here is our advice for small-businesses retailers to help them maximise their profitability this Christmas:
Trent Innes, Managing Director, Xero Australia