Businesses 'need to understand spending patterns'
Companies throughout Australia have been blighted by the country's new-found frugality, as people have started to save more than they spend.
Although ANZ recently reported that small business sales have been on the up of late, trading conditions are still incredibly rough for a lot of organisations – particularly those in the retail sector.
According to the Commonwealth Bank of Australia's latest business sales indicator, overall spending fell by 0.4 per cent in seasonally adjusted terms in August, which followed on from a 5.4 per cent drop in July.
Despite these worrying figures, a recent study by Roy Morgan Research showed that business banking customers are still optimistic that the economy will grow in the near future.
CommSec chief economist Craig James believes that entrepreneurs can still make money if they understand what people are spending their money on and when.
"Those that can adapt and tailor their offers for these individuals are those that will ultimately still perform strongly in this market," he remarked.
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