The retail sector needs to concentrate on improving customer service in order to maximise on the pre-Christmas spending rush, KPMG says.

During December, retailers need to bring in twice as much revenue compared to other months of the year. NBR reported yesterday that the Christmas season would not rocket the retail market back into shape but would bring in more modest takings.

KPMG business advisory partner Mark Kippenberger said retailers really needed to focus on customer service, product knowledge and turning browsers into buyers.

Mr Kippenberger said the retail sector relied heavily on the Christmas period to move significant amounts of stock and to sell stock at “reasonable margins” before the January sales begin.

He said one of the main challenges throughout the recession has been managing stock levels and ensuring not too much stock is ordered. This will be a challenge for December as well because any additional stock will need to be discounted in January.

“There is an opportunity to manage staff more effectively. Stores are hiring people with fewer skills who have very little product knowledge during a stressful period. They [staff] need to understand what (consumers) want and what questions to ask. They need to turn browsers into consumers.

“Advertising is doing its job but once you’re in the store, product knowledge is often not good enough. So many casuals are hired (during the Christmas period) for such a short period. Chains don’t do enough to help causal staff to sell efficiently, and this is done during the most competitive retail month of the year,” Mr Kippenberger said.

He said making a sale is half art and half science with good marketing and advertising strategies.

“Individual sales people are being overworked and a lot don’t have enough product knowledge, which makes a huge difference to a consumer (who is looking but not buying yet). These stores are competing against each other in December but consumers are not necessarily being helped a lot.”