Post-Christmas sales are expected to boom with big discounts on clothing and footwear

Shoppers should expect to see heavy discounts in the post-Christmas sales as many retailers look to overload stock they were unable to sell during the pandemic.

Exclusive: Shoppers should expect to see heavy discounting on clothing, footwear and accessories in the post-Christmas sales as retailers look to offload large amounts of stock.

Consumer confidence is expected to rise during the popular sales period from Boxing Day through to mid January, resulting in Australians splashing a forecast $19.5 billion.

This is an increase of 3.9 per cent compared to the same time last year, new figures from the Australian Retailers Association (ARA) and Roy Morgan show.

Household goods and food will see the biggest spending increases, however there are expected to be falls to consumers spending at restaurants and cafes, on clothing, footwear and splurging at department stores.

The ARA’s chief executive officer Paul Zahra said there had “been winners and losers” among retailers this year as many businesses battled the economic fallout from the COVID-19 pandemic.

“The winners have been household goods, supermarkets, liquor and pharmacy and the downside has been fashion as people have been generally working from home,” he said.

“But some winter merchandise, particularly in Victoria, they didn’t get to see the light of day so expect to see deep discounting in clothing, footwear and accessories.”

Australian Retailers Association chief executive officer Paul Zahra expects there to be some big bargains in the post-Christmas sales. Picture: David Swift

Mr Zahra said government stimulus including JobKeeper wage supplements and the coronavirus supplement paid on top of JobSeeker payments had helped retailers survive.

The strongest spending growth is expected to be in NSW (+4.4 per cent to $6.1 billion) and Queensland (+7.9 per cent to more than $4.1 billion).

Every state and territory will see an increase in spending except Victoria where spending will remain flat.

Mr Zahra urged shoppers to spend with Australian retailers to ensure businesses can stay open.

“Every dollar spent in a store gives a person a job,” he said.

“Shopping locally is really important, we are encouraging Australians to shop on their doorstep.”

But Mr Zahra warned for shoppers still yet to complete their Christmas shopping it’s now too late to order online and be guaranteed delivery before Christmas so they should shop in store.

The Council of Small Business Organisations of Australia’s chief executive officer Peter Strong said supporting retailers – especially smaller operators – is critical to their survival post-pandemic.

“We have got our big retailers but what makes a difference is all the little gift shops and little retailers like clothing and footwear,” he said.

“People will drive through one community to get to another one because of the type of shops.

“If you’re buying overseas you’re supporting jobs elsewhere than Australia.”

Roy Morgan’s chief executive officer Michelle Levine said the government payment schemes including JobKeeper, JobSeeker and early access to super coupled with mortgage and loan deferrals had “provided a significant windfall to millions of Australians” and had helped the retail industry in 2020.

@sophieelsworth

PREDICTED RETAIL SPENDING

Category 2020 Post-Xmas spend Forecast growth

Food $8.53 billion 10.5%

Household goods $3.51 billion 12%

Clothing, footwear $1.39 billion -5.2%

and accessories $1.03 billion -1.2%

Other Retailing $2.78 billion 2.9%

Hospitality $2.21 billion -16.7%

NATIONAL $19.45 billion 3.9%

PREDICTED SPENDING STATE BY STATE

State/territory 2020 Post-Xmas spend Forecast growth

NSW $6.14 billion 4.4%

Victoria $4.93 billion 0%

Queensland $4.12 billion 7.9%

WA $2.04 billion 3.6%

SA $1.25 billion 3.5%

Tasmania $419 million 7%

ACT $367 million 5.6%

NT $183 million 3.1%

NATIONAL $19.45 billion 3.9%

Source: Australian Retailers Association/Roy Morgan data.

Originally published as Post-Christmas sales are expected to boom with big discounts on clothing and footwear