Bing Lee general manager Peter Harris has confirmed a strong end to 2024 with Black Friday clearly bringing forward some Christmas sales.
“November and December were two very strong months,” he told Appliance Retailer.
“There is no doubt Black Friday is becoming the prominent sale event on the calendar. Despite facing some challenging headwinds in the few months leading up to Black Friday, it was a success in all categories, experiencing growth on the prior year.
“Christmas and Boxing Day sales were also strong, although there is no doubt that the strong December was given a good kickstart with some purchases brought forward by Black Friday.”
Harris notes the market is still facing challenges, including high interest rates and the cost-of-living crisis.
“The debt hangover from Black Friday and Boxing Day sales for consumers will also affect the market, as will the upcoming Federal Election which always tends to put a dampener on sales.
“Shipping costs and the Aussie dollar are also adding to the volatility. I hope we see some rate cuts soon, preferably before the election. If not, we need them after the election to help stimulate the market for a big June end of financial year sale and a solid backend to 2025.”
In his Leaders Forum contribution prior to Black Friday, Harris reflected on the highlights from 2024.
“The biggest highlight for Bing Lee has been the ability to understand customers and listen to their feedback to continue to offer great value, service and prices,” Harris said.
“Although one of the most challenging periods in retail, our teams continue to be united and work together to achieve the best possible outcome for ourselves and our customers.
“The growth and development of Signature Appliances is also a highlight. While launching a new brand in a major downtown is not an easy task, our team continues to build momentum and make significant relationships with new partners.
“More than ever, it’s critical to look at the data and listen to customers to react quickly and pivot to new demands.
“A major concern is how big promotional periods are becoming and the reliance on these key periods. We need to have compelling offers year-round, so consumers are willing to buy products when they need them, not just during sale events.”
When it comes to opportunities for growth, Harris said providing quality products and services, while offering as much value as possible to increase ASPs.
“Spending more time helping the customer find the right product for their needs is important. With fewer shoppers, we need to spend more time qualifying their needs and finding them the right solution.”
Harris had a clear message for suppliers: “Work closely with retailers and continue supporting marketing initiatives that help put our products and sector front of mind to get a greater share of customer wallets. We want consumers spending with us, not other areas like fashion and furniture.”
Harris said he believes volatile movements in price too often can become confusing and impact the overall customer experience. “Consumers may feel ripped off if they purchase outside a regular ‘pulsing’ activity. We must be agile and work closely together with customers front of mind to find the best solutions for growth.”