NATIONAL: Intense discounting by retailers during the post-Christmas sales blitz could take the sheen off the $14.6 billion expected to be generated over the period.
Australian National Retailers Association (ANRA) predicted shoppers would spend over $5.5 billion between Boxing Day and the end of December and an additional $9 billion between January 1 and 15. ANRA CEO Margy Osmond said although official figures had yet to be released, anecdotal evidence suggested sales over the period had already grown two to three percent on the previous year.
Department store Myer declined to comment on specific clothing, footwear and accessory results over the sales period but confirmed it would continue its stocktake sale until January 26. Communications general manager Mitch Catlin said "strong" apparel sales throughout the year coincided with some of the biggest reductions in post Christmas sale prices.
"Shoppers were keen for a bargain - we're very pleased with the way the stocktake Sales have begun and are continuing into January."
It is understood rival department store David Jones initiated heavy discounting before the start of the season, with 50 per cent slashed on high-end clothing in the lead up to Christmas. Discounting of up to 60 per cent was expected to shift 150,000 bras, 70,000 socks, 90,000 business shirts, 225,000 handbags and 200,000 pairs of shoes by the end of the sales period.
While it is believed these savings drew greater crowd numbers to Boxing Day sales than last year, analysts at the Australian Centre for Retail Studies are sceptical this would translate to increased turnover results. Program director Andrew Cavanagh said most retailers had remained "pretty quiet" about takings for the season.
"I think the key question is not how their sales figures were but how much money they made. Discounts of 40, 50 and even 60 per cent seemed to be fairly common and this has to be putting some pressure on retailers. It's not as if they could cut back staff during this period."
A sector-by-sector breakdown of results for the season is expected for release by the Australian Bureau of Statistics in February.
Meanwhile, figures from online measurement firm Hitwise indicated traffic in the apparel and accessories sector for 2008 peaked on Boxing Day. Year-on-year traffic to shopping and classifieds websites increased by 21 per cent comparing December 2007 to December 2008.
Top Ten Hits
Hitwise reveals the top ten visited apparel and accessory websites over December 2008.
Ezibuy Australia - 4.04 per cent of the market share
Witchery - 2 per cent of the market share
Rebel Sport Australia - 1.85 per cent of the market share
Peter Alexander - 1.33 per cent of the market share
Rivers Australia - 1.26 per cent of the market share
Supre - 1.19 per cent of the market share
Suzanne Grae - 0.92 per cent of the market share
Victoria's Secret - 0.90 per cent of the market share
Tiffany & Co Australia - 0.89 per cent of the market share
Zodee - 0.86 per cent of the market share