Doombusters unite to fight the gloom

Kathleen Donaghey
http://www.goldcoast.com.au/

ANALYSTS agree that low confidence is hurting our economy so The Gold Coast Bulletin is calling on readers to 'join the Doombusters' and help revive consumer spirit.

With interest rates at a three-year low and petrol prices tumbling, consumers have more money and no better time to spend it than the lead-up to Christmas.

New stores are still opening, including a wing of boutique shops at Robina Town Centre, there are bargains to be had across the city and accommodation providers are offering holiday deals.

All combined, few cities are better placed to weather the economic storm than one whose name is made of 'gold' and where the sun shines all year round.

With all the fundamentals in place in this city, The Gold Coast Bulletin believes all that's needed to help get the economy flying is a little dose of confidence.

Caravan parks have so far been the first to enjoy the support of locals as bookings flood in for Christmas but other sectors are in need of help.

New Gold Coast business owners like Sean McCormick, who recently opened his jewellery and gift shop Fiera in the Robina Town Centre, agreed shoppers needed a boost in confidence.

Mr McCormick owns six jewellery and gift shops across the south-east and said turnover had fallen 10 per cent since the second week in October.

Sales have also remained slow in what should be the busiest time of the year.

Mr McCormick applauded The Gold Coast Bulletin's campaign to encourage people to get behind small businesses, saying it was exactly what was needed.

"It's coming up to Christmas which is a time of giving and it's time to get out and see what's new in stores," said Mr McCormick.

"Small businesses are at the coalface so people need to get out and support local businesses to get things moving."

Retailers Association chief executive Scott Driscoll said the current slow-down mostly stemmed from psychology which was why he has been eagerly talking things up.

Mr Driscoll said people needed to realise the economic outlook could be turned around from the current doom and gloom just by 'opening your wallets'.

"What we're going through is not an economic problem, it's a confidence problem," said Mr Driscoll, whose organisation represents independent shops, including food, clothing and furniture.

"Household budgets are actually in good shape: we've had interest rate cuts and the Government's $10 billion stimulus package means people will have money in the lead-up to Christmas.

"We're actually expecting a fairly good Christmas."

Restaurant and Catering Queensland chief executive James Visser agreed that the bad times need not remain so.

"While it's true discretionary spending is somewhat down, it's not all doom and gloom," said Mr Visser. "I have a lot of optimism because of the interest rate cuts -- with more expected -- and the Reserve Bank saying we're in a slump and not a recession. People are not going to say Christmas is cancelled.

"There'll be a lot of Christmas parties. It's hard to celebrate Christmas without celebratory cheer."

The latest CommSec retail spending figures show retail trade fell by 1.1 per cent in September and the worst hit sectors were food, clothing and other discretionary retail items. Business closures increased 7.59 per cent in Queensland in the September quarter, according to Insolvency and Trustee Service Australia data.

Insolvency firms on the Gold Coast have been kept busy, with businesses dropping out in building, transport, hospitality and food, although Worrells insolvency practitioner Brian Carey said other states were much worse off.

As a result of the situation, businesses, restaurants and cafes across the Gold Coast have been complaining of fewer customers and sales, including Retravision Bundall and Pacific Fair owner Sep Abedian, who said the customers just weren't coming.

Manchester stores, gift shops and clothing shops such as Karma House and Home have also watched as customers walk in and out without making a purchase.

"We've been expecting it to ramp up but it hasn't ramped up yet," said Karma owner Kerry Goodwin.

Doing his part to turn things around amid the standstill is Hot to Trot shoe shop owner Alan Rasho who is making light of the end-of-the-world mantra to snare a few more customers.

Mr Rasho said he was known for his budget leather shoes at Ashmore Plaza and the way to attract even more shoppers was through his 'doom and gloom sale' with nothing over $40.

"Since the economy has gone bust we've doubled our business," said Mr Rasho. "We haven't been quiet yet. People want their money to go further and this is where they come, especially if you've got a family of four kids who all need shoes."

Retailers across the board are being encouraged to similarly do whatever they can to prop up sales, including discounting heavily and promising interest free periods for 15 months.

Clearance offers, discount shopping vouchers, up to 50 per cent off sales and special offers were now available right across the Gold Coast.

However, if in the end all eventually goes bust and Australia follows the lead of the US and Europe which appear to be slipping into recession, many would agree there is no better place to tough it out than the Gold Coast.

Sunning herself at Broadbeach yesterday, Tess Goot, 23, said there was nowhere she would rather spend her time than on a Gold Coast beach.

"I can't think of a better place to be," she said.

CommSec equities economist Savanth Sebastian said shoppers had not only been spending less, they were also limiting themselves to crucial items, eating at home and saving 'for a rainy day'.