By Emma Koehn
Grant Arnott knows firsthand how aggressive shoppers can get when it comes to chasing bargains.
It’s been 10 years since he launched Click Frenzy, the sales event that started as a way to highlight the strength of Australian e-commerce businesses. He still remembers the rage directed towards his team after the website melted down during the inaugural event in 2012.
Grant Arnott has overseen Click Frenzy for the past decade.
“I can laugh about it now, but it wasn’t the greatest launch in history, that’s for sure,” Arnott said.
“The vitriol directed my way was quite frightening - I was experiencing threats. It was a real insight into consumer angst, I suppose.”
While the Click Frenzy’s teething issues were well publicised at the time, the concept also shone a light on the appetite of Australians for shopping local brands. Two million consumers had hit the website in search of deals, and many brands had strong results before the site froze.
Plenty has changed in the e-commerce landscape since 2012, including the launch of Amazon into the Australian market, a global pandemic and a cost of living crisis as households battle inflation at 30-year highs.
Arnott’s team has also expanded, as has its investments in its platform to ensure it can handle millions of hits. The group is bringing forward this year’s event to Tuesday November 8 to try to ensure shoppers get deliveries in time for the festive season, given the pressure on delivery networks.
“I know that all the staffing issues that are affecting retail coming into Christmas will be affecting the logistics and delivery networks. I suspect there will be challenges,” he said.
Inflation is at 30 year highs, coming in at 7.3 per cent in the September quarter, while the price of everyday items such as fruit and red meat has skyrocketed as local producers fight rising costs and tough weather conditions.
These pressures have the power to curb discretionary spending, but the local retail sector is optimistic that a spending slowdown won’t happen until early next year. Retail trade figures for September show spending was up by 0.6 per cent across the country, and categories such as clothing and footwear are still accelerating.
Arnott said while a spending slowdown was coming, across the sector companies were “pretty buoyant” about the festive sales season.
‘We’re seeing a broader range of deep offers and sharp offers with retailers able to get their hands on more.’
Grant Arnott, Click Frenzy founder
“It’s slowing down, but I don’t think it’s slowing down to the level we’ve all expected,” he said.
Retailers are acutely aware of the cost of living crunch, however, which is leading to a more sophisticated approach to sales events such as Click Frenzy. More than 500 brands will be involved in this year’s event, which promotes a range of deals including a limited number of “99 per cent off” offers for shoppers who sign up early.
A decade ago, companies were testing the waters and were more tentative about the offers to customers. This year, brands have spent months working on their strategies for deals in this period of economic uncertainty.
“There is a lot of planning that goes into buying stock - planning for the customer experience. That has changed demonstrably,” Arnott said.
Retailers are predicting that cost of living pressures will elevate the importance of pre-Christmas sales, he said.
Supply chain issues have also started to resolve after a tough festive trading period last year. Brands have started planning their inventories earlier this year, Arnott said, which also means they are offering deeper discounts than in previous years.
“We’re seeing a broader range of deep offers and sharp offers with retailers able to get their hands on more.”
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