Retailers optimistic about the start of 2015

Retailers are generally positive about the first quarter of 2015, according to CIMB’s Christmas trading review, although margins are likely to come under pressure with the Australian dollar set to fall.

According to The Australian, the survey of 2300 retailers shows many used strategic discounts to “bait” customers in the lead-up to Christmas. However, they were not forced into deep discounts as a result of overstocked and unsold merchandise, as in previous years.

Meanwhile, more than half of retailers surveyed described gross profit margins growing in the lead-up to Christmas, with margins flat for an additional 17% of retailers.

“The survey found a relatively solid outlook for January and February sales momentum. Stock levels appear well kept as at the end of December and early trading momentum in January has been positive,” said CIMB analyst Daniel Broeren.

This article first appeared on SmartCompany.