The Australian Retailers Association was already expecting the biggest Xmas spend on record, but inflation and stronger spending have driven its forecast up, just weeks out.
ARA now expects holiday spending to reach $66 billion over November and December, after initially predicting a $64 billion Christmas splurge.
This would mark an increase of 6.4 per cent over last year.
Stronger food and hospitality spending as well as inflation are driving the higher numbers, according to ARA CEO Paul Zahra.
“The news couldn’t come at a better time for the hospitality sector which has endured more pain than most businesses through the pandemic,” he said.
Zahra notes that “it’s important to acknowledge that price increases are a factor in our current retail numbers and are also driving Australians to spend early to get in ahead of inflation.
‘We haven’t yet seen the forecast inflationary peak, and we anticipate a softening of sales in 2023.”
