Melbourne retailers - particularly fashion retailers - are likely to see an increase in sales during the Australian Open this year, according to Mastercard’s SpendingPulse.
SpendingPulse is an indicator for retail spending that measures in-store and online sales across all forms of payment.
Research from the Mastercard Economics Institute (MEI) shows that, compared to the two weeks preceding the competition, total retail sales - excluding auto - are expected to grow 12.6% during the event, driven by in-store sales of apparel, alongside restaurant and accommodation spending. This is based on spending in the first quarter of 2023.
This will be particularly noted across the city of Melbourne, and retailers close to the sporting arena.
Waverley Gardens and Springvale shopping centres saw the highest traffic during last year’s tournament, the research showed, with spending on sporting goods, apparel and footwear outperforming the most in Waverley Gardens, up 3.7% compared to the rest of the first quarter of 2023.
MEI chief economist in Asia Pacific, David Mann, said each year the tennis tournament sees Melbourne come alive.
“The data suggests the tournament provides a significant shot in the arm for the local economy, so tapping your phone at your local high street this January has more impact than you realise,” Mann said.
“The reach of the tournament goes far beyond Melbourne Park, and for two weeks every January, Australians turn up at their local pub to watch with friends, discuss the matches over a meal, or even head to the local sports store to pick up a racquet and hit the court themselves – all of which give small businesses a much-needed boost to their bottom line.”