Retail disaster forecast in election lead-up

By Emily Bencic

The lead-up to an election always sees a decline in consumer spending and confidence, according to WA’s Dorsett Retail managing director, David Dorsett-Lynn, although the result of the election usually sees a return to business as usual.

“Whether you vote labour or liberal, it is a time of suspense as consumers are uncertain of the future,” he said.

Dorsett-Lynn also believes that consumers will purchase replacement products in the next couple of months, but are likely to save their money on upgrades.

“If you have a broken fridge I bet you will replace it but if you’re thinking about an upgrade you might well wait.”

NSW 2nds World owner, Peter Hammerman agreed with Dorsett-Lynn, noting that discretionary sales, such as renovations may be put off until after the election.

However, he has not seen a significant change in customer traffic since Turnbull called the election, but is expecting it to come.

“Traditionally, elections are a disaster for retail. In the lead up to a Federal election there will be a softening in retail sales. It has happened in the past so it will probably happen again, although there are some positive events on the horizon.

“The footy season is well underway and TV cooking shows help stimulate sales for kitchen appliances. Winter will help (when it comes) because as soon as it gets a little cold, customers rush in to buy heaters or reverse cycle air conditioners,” he said.

QLD Rockhampton’s Webbers Retravision owner, Doug Webber, has said his sales have been affected by a local election that was held in March and now, the federal election in July. He believes customers go quiet ahead of the election as they wait for “some kind of miracle.”