Record sales for Aussie retailers on horizon this festive season
It is predicted Aussies will splash over $60 billion on retail sales this Christmas, despite the country’s cost of living challenges.
A record-breaking retail sales period is on the horizon for Australia this festive season.
Despite the nation’s cost of living challenges, consumers will spend over $60 billion on retail sales for the first time, the National Retail Association Australian has predicted.
Spending for the pre and post Christmas sales period (November 14 – December 31) for Aussies is expected to be up 3.9 per cent on last year, the NRAA has revealed in a report.
According to the NRAA’s Consumer Sentiment Report “shoppers are preparing for the bumper sales season by changing their spending behaviour to be able to afford special Christmas events and gifts”.
“For shoppers conscious of their household budgets, sales events are the ideal time to make Christmas purchases,” the NRAA’s interim CEO, Lindsay Carroll, said.
“We found 71 per cent of Aussies are taking measures such as cutting back on day to day spending, seeking out discounts and offers or switching to cheaper brands to deal with increasing costs this season.
“With inflation and interest rates yet to take full effect, almost half of consumers reported feeling confident and one in five plan to outspend last year,” Ms Carroll said.
“It’s clear people still want to feel special and have those great experiences, but rather than indulging in costly goods and services, shoppers are planning ahead to score bargains in the upcoming sales events,” she said.
Online retail is anticipating another strong year of growth due to evolving consumer behaviour and the growing popularity of events such as Cyber Monday, as per the report, comprising ABS data, research conducted by the NRAA and feedback received from members.
“Consumers are wanting to tick off their Christmas shopping earlier than December, and bargain sales events such as Cyber Monday are becoming major events on the retail calendar, providing consumers with the accessibility to research and purchase items anytime, anywhere,” Ms Carroll said.
“Even though Boxing Day remains the biggest sales event of the year, Black Friday and Cyber Monday are gaining momentum, with 45 per cent of consumers likely to purchase or will definitely purchase items at these events,” she said.
While e-commerce is definitely here to stay, 50 per cent of consumers reported they prefer to spend in-store, the report stated.
“Consumers still want those unique in-store retail experiences,” Ms Carroll said.
“They look for excellent customer service, with free delivery and returns, loyalty programs and friendly staff, which are ranked as the most important retailer services among consumers.”
Ms Carroll worried about the record-level labour shortages during the “most crucial time of year for retailers”.
“Businesses have been battling record levels of labour shortages and supply chain issues, but retail sales have been performing quite strongly in the lead up to Christmas,” she said.
“What this means for retailers is that there are still customers out there willing to spend their money this season, but more than ever they are looking for bargains, great shopping experiences and for smooth transactions,” Ms Carroll said.
“The challenge for business owners and their staff is greater than ever to have the right products available, the best service and sharp pricing,” she said.
Telco misleads 9k customers over NBN speeds
Telstra downgraded the upload speeds for thousands of its Belong NBN customers without telling them or lowering the price.
Demand to Dutton on penalty rates
A major union is calling on the Coalition to pledge support for retail workers’ penalty rates ahead of a Fair Work fight.
Aussie food chain reveals surprise best seller
A fast-growing Australian food chain has revealed its best selling item as it announced a $7.3 million profit for the first half of this financial year.