I read in the BRW magazine yesterday that 53% is the number of Australians who won’t cut discretionary spending during 2009. In such a downturn this is not bad news. A survey by MasterCard in the APEC region shows that an average of 10 to 20 per cent of Australians spend their income on discretionary items and are more reluctant than most nations in the region to give them up. Big household and vehicle purchases are being delayed, but fashion, dining and entertainment remain untouched so far. Interestingly (according to James Thomson from Smart Company), Myer has delivered a champion profit result for the six months to 31^st Dec 08. Net profit in this period rose 5.3% despite a 3.7% fall in sales.

So this tells me that although we are experiencing tough times, lots of businesses are and will be in good standing through the downturn. It’s all about making the most of it and focusing on the positives. I’m not saying that it’s a retail bonanza but as a mater of fact, 40% of people will put their stimulus bonus towards their mortgage or credit card debt, or pop it into the bank (according to the Australian National Retailers Association). Which means 60% of people haven’t been spooked into saving their money or getting ahead with their credits and will be looking at adding their $900-$950 dollars into their discretionary spend. Read some newspapers and you will find that Big W, Coles, Target and Kmart have been reporting sales increases. Big W had a one-third higher last Thursday compared to the same day in 2008.

Businesses, small, medium and large are already advertising stimulus package deals. For example, Mercedes-Benz is advertising to tradesmen stimulus package deals on vans, and the beautician near work has a $10 manicure stimulus package. There’s no difference, they both are seizing the opportunity and I am certain they will drive traffic into their store.