Bumper Christmas sales forecast for retailers

Four out of five retailers are expecting higher Christmas sales this year, with many counting on big increases ­online, according to research by Deloitte.

Four out of five retailers are expecting higher Christmas sales this year, with many counting on big increases ­online, according to research by Deloitte.

And more than 90 per cent are expecting sales growth next year, polling by the heavyweight accountant has found.

Deloitte retail, wholesale and distribution group leader David White said that, broadly, retailers were optimistic as Christmas approached.

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With the Click Frenzy online sales event winding up last night and US-inspired Black Friday sales event Friday week, 80 per cent of retailers are ­expecting increases in online sales of more than 10 per cent ahead of Christmas.

Retailers are said to be optimistic as Christmas approaches.

Smaller businesses were among those polled in the seventh Deloitte Retailers’ Christmas Survey. It found that across all retailers, 62 per cent expected to use discounting to drive sales, however most said discounting would not happen before Boxing Day.

Australian Retailers Association executive director Russell Zimmerman said the Deloitte findings were in line with the industry group’s research.

In partnership with pollster Roy Morgan, the association is predicting sales of $51 billion from last Friday to December 24, and sales growth of 2.9 per cent year on year.

Mr Zimmerman said Click Frenzy and Black Friday had grown as shopping events. Even Singles’ Day, on November 11 — a sombre ­occasion in Australia and other Commonwealth countries where the date marks Remembrance Day — was starting to be observed here, he said.

Australian Retailers Association executive director Russell Zimmerman.

Singles’ Day began in China in the 1990s as an “anti-Valentine’s Day”, where single people splashed out on gifts for themselves.

The retailers association said more than $20 billion was likely to be spent on food alone in Australia in the run-up to Christmas, up 3.7 per cent on last year.

Mr White said that last year, there was a significant increase in the number of retailers “investing in their digital capabilities”, and this year “it appears they are looking to reap some reward from these investments.”

There was still room for bricks and mortar stores but their role was changing “from just being a transactional space to an ­opportunity to build brand through an experience and service that can often only be achieved face-to-face”, he said.

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