Christmas spending expected to climb by 2.6 per cent to almost $53 billion
The clock is ticking down to December 25 and retailers are urging consumers to buy from Australian businesses to ensure they stay afloat. HOW TO SAVE ON YOUR SEASONAL SPLURGE
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EXCLUSIVE
Shoppers are being urged to support Australian businesses in the lead-up to Christmas as the retail sector forecasts subdued spending.
Increasing costs of living, non-existent wage growth, the bushfire crisis and global tensions are expected to impact the amount consumers outlay.
The latest Australian Retailers Association and Roy Morgan figures released today forecast shoppers will splash almost $53 billion from now through until December 24.
This is a 2.6 per cent increase on the same period last year.
The ARA’s executive director Russell Zimmerman urged consumers to think about buying from Australian stores before spending up overseas to help flow cash through into the local economy.
“This year more than ever if you are thinking about buying online it’s really important to think about how you can support local retailers,” he said.
“It’s important to support them to ensure the industry and the jobs remain and people get employed.”
Shoppers already looking to snap up bargains have been able to pounce on sales including Singles Day and Click Frenzy this week.
Still to come is the shopping bonanza weekend of Black Friday on November 29 and Cyber Monday on December 2.
This is expected to see huge discounting across everything from furniture, clothing to technology and toys.
The much-hyped shopping days, supported by domestic retailers, make it the opportune time for consumers to snap up bargains and fill their stocking in the remaining weeks before Christmas.
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But Australian retail magnate Gerry Harvey said, “if people really want to help the economy they are better off going into shops and buying things rather than buying it online or buying it from online overseas”.
“The shops are the ones that employ all the staff and people in retail and they are ones who pay all the taxes,” he said.
“The online companies in Australia basically pay no taxes and online stores overseas certainly pay no taxes so they are not supporting the economy the way the bricks and mortar ones are.”
Australian Bureau of Statistics data found in November last year shoppers spent $28.6 billion compared with $34.3 billion in December.
The ARA figures also found sales of food would bring in $21.7 billion – an increase of 3.2 per cent.
Spending on clothing, footwear and accessories would also rake in $8.8 billion – an increase on 3 per cent.
PRE-CHRISTMAS GROWTH BY CATEGORY
• Food $21.7 billion +3.2%
• Household goods $8.8 billion +0.6%
• Clothing, footwear, accessories $4.2 billion +3%
• Department stores $3 billion +0.5%
• Other retailing $7.6 billion +3.7%
• Hospitality $7.4 billion +2.3%
• National $52.7 billion +2.6%
PRE-CHRISTMAS SALES BY STATE
• NSW $16.8 billion +2%
• Victoria $13.8 billion +3%
• Queensland $10.6 billion +3.6%
• SA $3.4 billion +2.1%
• WA $5.5 billion +1.7%
• Tasmania $1.06 billion 2.3%
• ACT $984 million +2.6%
• NT $490 million +0.4%
National $52.7 billion +2.6%
Source: Australian Retailers Association/Roy Morgan.