Retailers hopeful of strong Christmas spending in coming weeks

VICTORIANS are on a Christmas shopping charge, with sales growth tipped to head the nation as shoppers statewide pump billions into retail coffers.

VICTORIANS are on a Christmas shopping charge, with sales growth tipped to head the nation.

Shoppers statewide will pump a predicted $12.7 billion into retail coffers from tomorrow until Christmas Eve, up 3.9 per cent on the same period last year.

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Nationally, a whopping $50 billion will be splashed out, according to Roy Morgan Research forecasts for the Australian Retailers Association.

The festive season trade will be a much-needed boost for the industry.

“It is critical. Up to 60 per cent of most retailers’ turnover and profit is often made in the lead up to Christmas and post-Christmas sales,” ARA executive director Russell Zimmerman said.

ARA’s executive director Russell Zimmerman is hopeful of strong Christmas spending.

Victoria’s store variety and renowned fashion capital status was likely to attract some Christmas shoppers from interstate, he said.

While rising household bills and low wages growth had subdued spending in recent months, consumers were expected to start opening the purse strings.

“When it gets to Christmas there tends to be a refocus, now they are starting to free up and say we are going to spoil ourselves,” Mr Zimmerman said.

Brittany Cushing, 25, started her Christmas shopping this week and said she’ll be hunting for little presents to snap up in the coming weeks.

Brittany Cushing, 25 and Danique Gowdy, 25, on the lookout for Christmas gifts at Myer, Bourke St, Melbourne. Picture: Tim Carrafa

“I’m going to wing it this year, I’m happy just to buy a few Kris Kringle presents and get not-so expensive gifts,’’ she said.

Retailer Gerry Harvey expects strong sales in the coming weeks and isn’t concerned by the expected boost to online shopping and potential arrival of Amazon before Christmas.

He is urging customers to get their shopping lists organised.

Harvey Norman chairman Gerry Harvey said it pays to be organised with Christmas shopping.

“If spending keeps going the way it is I’m expecting we will be up in November and December by 2.5 to 4 per cent,’’ Mr Harvey said.

“An awful lot of people won’t buy online in December because they will be worried that they might get the item or not.”

Myer’s head of stores Tony Sutton expects personalised gifts and the in-store “one-stop shop” for customers — the Giftorium — to be popular.

“Our online has been growing at a pretty rapid rate and we expect that to continue during the Christmas period,’’ he said.

“Click and collect is becoming more popular particularly during the Christmas period and we also have same-day delivery or next-day delivery or standard delivery.”

Almost half of Australians have already started buying presents, according to finder.com.au research.

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@KarenCollierHS