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Victorian businesses, retail leaders encourage us to spend more this Christmas to save the economy

Business and retail leaders have called for Victorians to spend up before Christmas to kickstart the economy and restore cheer to the state.

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Business and retail leaders have called for Victorians to spend-up before Christmas to kick start the economy and restore cheer to the state.

Victorian Chamber of Commerce and Industry chief Paul Guerra said data from banks showed many people — particularly office workers who had been unable to commute — had saved money during the COVID lockdowns.

Solid savings would hopefully lead to hearty Christmas spending across the State, he said.

“Our expectation is that money will be spent strongly in retail and hospitality environments in the lead up to Christmas … and of course that has a flow on effect to manufacturers and producers as well,” Mr Guerra said.

“We are optimistic of a strong December and January period, the question is what happens after that.”

New tourism figures showed Victorian accommodation and hospitality providers were heavily booked from now until the end of January.

“Which means Victorians are likely to holiday and spend locally also, which is fabulous,” Mr Guerra said.

Manufacturing sites were back at optimum production levels and the agricultural sector was also doing well, “although they’d like to get more workers in”, he said.

“Across the board we are seeing optimism with the return of work and that’s increasing as we see more days on end without any COVID cases,” Mr Guerra said.

More office workers returning to the Melbourne CBD would also help breathe life back into the city, shuttered for so long, he said.

Major employers have promised a targeted return of 70 per cent of their workforce to the city once government regulations allow.

Ten big companies have made the “CEO Pledge” in a meeting with the City of Melbourne.

In a report to be considered by city councillors on Tuesday, council chief executive Justin Hanney said that before shutdowns the municipality had almost 500,000 jobs, but most were now working from home.

“The number of commuters travelling into the city via Flinders Street Station has reduced by up to 90 per cent compared to last year,” he said.

“This reduction in daily city foot traffic has had a significant impact on direct local spend as well as broader impacts to city activity and vibrancy and business confidence.”

To support the CEO Pledge program the council will look at a voucher scheme for Melbourne hospitality businesses to support their recovery.

Australian Retailers Association chief executive Paul Zahra said increased foot traffic could only be good for city stores.

But Melbourne retailers and staff were already rejoicing after opening their doors and being greeted with unprecedented levels of enthusiasm from shoppers.

Kyle Buchanan, Izzy Gissing, Luke Girke and Anissa Gissing, looking forward to having a Christmas party at Bistro Guillaume at Crown. Picture: David Caird
Kyle Buchanan, Izzy Gissing, Luke Girke and Anissa Gissing, looking forward to having a Christmas party at Bistro Guillaume at Crown. Picture: David Caird

Customers were flocking to their favourite stores and sales were strong, with people spending more per shop than in the past, he said.

“While it’s too early to know exactly how much of a bounce there’s been in retail sales, we know that shoppers are happy to be back … getting in and out of shops a lot quicker but spending more while in-store,” Mr Zahra said.

New Commonwealth Bank figures showed card spending was up 15 per cent last week on the same period in 2019, he said, adding the industry prayed “this trend continues”.

“After a long time in their homes, shoppers know what they want to buy and are spending in a focused way. It’s a good time to go back to the stores, with plenty of great deals available as we gear up for the big Christmas holiday period,” Mr Zahra said.

“Now more than ever, Melbourne’s retailers need shoppers to spoil themselves and gear up for a Christmas like no other.

“We have all endured a difficult year, and every dollar that comes through the till is a dollar to help them recover and get our businesses back on a strong footing and invest in the livelihoods of the thousands of Victorians that work in the retail sector.”

Committee for Melbourne chief Martine Letts said Melbourne’s suburbs and CBD were “quite visibly coming alive”, with a hive of activity in hospitality, services and sport.

The opening of tourist and arts and cultural attractions — as well as the return of international students — would further boast the city’s recovery, Ms Letts said.

“These are the backbone for real economic recovery. Business and Government health and transport authorities must work hand-in-glove to ensure that every Melburnian can feel confident to return to their offices and to spend,” she said.

HAIRDRESSERS BACK TO THEIR BUSY BEST

“We’ve never been so excited to go back to work in our entire lives, thank you Dan,” the hairdressers of Melbourne CBD salon Billie Jean posted on social media last month, after Premier Daniel Andrews announced the trade could resume in the city and suburbs.

Even after being run off their feet since reopening the chic laneway salon, the hairdressers’ enthusiasm for their work hasn’t waned and appointments are nearly booked solid until Christmas.

Billie Jean Hair is back in business after Melbourne’s second lockdown Picture: Jason Edwards
Billie Jean Hair is back in business after Melbourne’s second lockdown Picture: Jason Edwards

When the Herald Sun called, namesake owner Billie Jean Murphy was too busy cutting and colouring COVID lockdown locks to answer her phone, but offsider Michelle Stewart said clients were loving the chance to leave their homes and let their hair down, quite literally.

Many were opting for dramatic hair style and colour changes, Ms Stewart said.

“For some of our clients, their hair has grown quite a lot and that provides an opportunity to do something different to what they’ve always had in the past,” she said.

And if there was a silver lining to lockdown locks, it was that more women had “embraced their grey,” Ms Stewart said.

“Quite a few clients who had been unable to have their hair regularly recoloured because of the COVID shutdown had discovered they quite liked the grey regrowth,” she said.

IN FULL BLOOM

Business is blooming again at Brunswick’s Babylon Flowers.

While the Sydney Road florist continued trading online during Melbourne’s extended COVID lockdown, the doors to the pretty store were closed.

Since reopening on October 28, bouquets have flown out the door, with Melburnians eager to enjoy the heady delights of seeing and smelling Babylon’s blooms in-store.

“Buying flowers really is a sensory experience and people said they really missed coming into the store and picking their flowers in-person,” floral designer Sarah Beaumont, who owns the store with friend Kylie Williams, said.

“People started coming in from the moment we opened really … and they were so excited to be here and out shopping again … we’ve been busy.”

And while exotic, imported flowers were still hard to come by, the fact it was now spring, meant locally-sourced blooms were abundant, she said

James Robertson, along with Nick Keogh, are excited to be back. Picture: Alex Coppel.
James Robertson, along with Nick Keogh, are excited to be back. Picture: Alex Coppel.

OFF AND SAILING

After an “absolutely harrowing” year, family business Sport Phillip Marine on Victoria’s Mornington Peninsula has wind in its sails once more.

Owner Jamie Robertson said throwing open his store’s doors after months of COVID-enforced closure put a smile on his face, “for the first time in a long time”.

In a “rotten” 2020 which saw the death of a friend and grave illness of his father, as well as his business shut down, there had been little to smile about, he said.

While the store had remained operational via a click-and-collect model, there were some days nobody clicked or collected, Mr Robertson said.

But customers had flocked into his Mornington store — which sells sailing, boating, fishing and diving and snorkelling equipment – almost the minute he opened, eager to enjoy their new found freedom and take to the water, he said.

“It’s been absolutely sensational, business is back in full swing,” he said.

“The wind is filling my sails very well … it’s a good feeling!”

MORE NEWS:

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AUSSIE STAR WHO BECAME A WINDOW CLEANER

mandy.squires@news.com.au

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Original URL: https://www.heraldsun.com.au/news/victoria/victorian-businesses-retail-leaders-encourage-us-to-spend-more-this-christmas-to-save-the-economy/news-story/6d0252f6235dd6c0c77bd29ac6195daf