Australian retailers are bracing for the biggest Christmas on record, with spending expected to jump 3.9 per cent from last year.
The National Retail Association forecast Aussies to spend $60.6 billion in the pre and post-Christmas sales period between November 14 – December 31.
These figures swing below those arrived at by the Australian Retailers Association, which has forecast $64 billion in retail spend for the holiday period, with a 3 per cent upswing.
“For shoppers conscious of their household budgets, the sales events are the ideal time to make Christmas purchases,” explains Interim NRA CEO Lindsay Carroll.
“We found 71 percent 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 the consumers reported feeling confident and one in five plan to outspend last year.
“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.”
Carroll notes that, although Boxing Day remains the biggest sales event of the year, Black Friday and Cyber Monday are growing, with 45 percent of consumers indicating to the NRA they are likely to purchase or will definitely purchase items at these events.
NRA also found that half of all shoppers prefer the in-store spending experience.
“Consumers still want those unique in-store retail experiences,” Carroll confirms.
“They look for excellent customer service, with free delivery and returns, loyalty programs, and friendly staff ranked as the most important retailer services among consumers.
“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.
“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 smooth transactions.
“The challenge for business owners and their staff is greater than ever to have the right products, the best service, and sharp pricing.”
