After seemingly endless crises hitting the local economy hard, consumers are more conscious than ever about where their money is going, but experts say that may not last forever.
In a tumultuous few months that saw small towns hit with drought and bushfires, shop local campaigns began to spring up across social media highlighting the beautiful and practical goods for sale in the places hardest hit in a bid to support them.
IBISWorld Senior Industry Analyst Nathan Cloutman said while fires and drought had influenced shopping habits it may not last.
"Within some younger demographics there has been a move towards independent stores rather than national chains, due to ideas of quality and supporting the local economy," he said.
However, he expected customers would return to large chains offering lower prices as unemployment rises and wages dip as a result of the pandemic.
Shop local campaigns have made a noticeable impact for stores like Trove Canberra which sells locally-made clothing, jewellery and homewares.
Designer Carolyn Greig works at the store, she expected the many crises to help business in the future.
"I think all this COVID-19 business has made people realise the value of shopping locally and supporting Australian made," she said.
"I think a lot of people think about their purchases ... and I think we'll get more support rather than less."
However, an IBISWorld report into clothing retailing in Australia released last month, found small and medium enterprises (SME) were struggling to keep up.
"Industry competition has intensified as international retail giants Zara, Uniqlo and H&M have expanded their presence in Australia," the report read.
"Many SME retailers have struggled to compete with the scale and efficiency of these international retailers.
Stores have faced pressure from online-only brands and have been slow to catch up with sophisticated websites, free returns and delivery, the report said.
Mussen Boutique owners Simone Zappe and Mia Carr closed their Canberra city store and moved to an entirely online business model in March.
"It was the best decision we could make for the business," Ms Zappe said.
The store stocking local and Australian designers hasn't experienced the decline felt by many in the sector.
"We already had an online presence but the support was been so overwhelming."
"Our online orders just from Canberra have increased significantly."
Ms Zappe said the duo weren't concerned about shoppers looking for cheaper alternatives and their business model stacked up.
"We're not a high-end boutique, we're always about affordability," she said.
"A lot of the products we stock as products those bigger chains don't have, so we're not in direct competition with them."
READ MORE:
-
Let Canberrans know that your doors are open for customers
- What are the next steps for businesses waking from hibernation?
- How Canberra business is feeling the pandemic
Sales had been good throughout February at Trove Canberra, off the back of shop local campaigns.
The store closed for six weeks when coronavirus restrictions came into force but opened last Thursday to their "loyal customer base".
"We were actually really buoyed by people's belief in us, people coming in and still shopping with us," Trove's Jennifer Baird said.
"We've been surprised. Because the cafes and beauticians are closed we thought we'd have reduced sales but it's been great."
Ms Baird said social media campaigns have been critical in growing their customer base.
With a limited advertising budget, Facebook and Instagram are the best tools to spread the word.
