Retailers are predicted to bag billions during post-Christmas sales - how much can the apparel sector expect?
Industry body the Australian Retailers Association (ARA) and research partner Roy Morgan Research have predicted that shoppers will spend the $15.1 billion during post-Christmas sales from Boxing Day through to mid January.
The figure represents an estimated two percent rise on last year’s predicted sales of $14.8 billion.
ARA executive director Russell Zimmerman added that last year’s post-Christmas predicted sales ($14.8 billion) were “almost spot on”, with the actual figure confirmed only slightly lower at $14.6 billion.
“Based on the actual figure of 14.6 billion, we now see an even larger percentage growth year on year at 3.8 percent – a positive sign for the retail sector.
“Looking at the actual post-Christmas sales figures for 2012 and this year’s post Christmas predictions, cafes show the highest level of growth at 6.2 percent.
"Apparel (3.9 percent) and food (3.8 percent) are also set to experience a small but significant jump in post-Christmas sales, indicating that gift buying will be replaced by shoppers splurging on items for themselves, updating their summer wardrobes and dining out,” he said.
All states and territories are predicted to experience positive growth this post-Christmas period, ranging from two percent (Western Australia) to 6.1 percent (Northern Territory).
“As we know, the festive sales period doesn’t just continue in the stores; there are also many shoppers who will be enjoying the sales from their lounge rooms. Some retailers are expected to start their Boxing Day sales as early as Christmas Eve,” Zimmerman said.
“The decision to leave the cash rate unchanged at 2.5 percent in December is definitely an obstacle for retailers trying to get back on track financially over the Christmas period, and the ARA is looking forward to the Reserve Bank of Australia (RBA) reassessing the outlook when it meets again in February 2014.
“We believe there is room for further adjustment on the cash rate, and while a favourable decision in February will be too late to encourage Christmas spending, this adjustment would certainly allow retailers to start their new year with confidence.”
Roy Morgan Research figures – post-Christmas:
|
State |
Post Xmas Actuals |
Post Xmas Prediction |
Predicted Growth |
|
NSW |
4393 |
4585 |
4.4% |
|
VIC |
3641 |
3784 |
3.9% |
|
QLD |
3055 |
3169 |
3.7% |
|
WA |
1789 |
1825 |
2.0% |
|
SA |
984 |
1027 |
4.4% |
|
TAS |
289 |
298 |
3.1% |
|
NT |
164 |
174 |
6.1% |
|
ACT |
268 |
278 |
3.7% |
|
NATIONAL |
14582 |
15140 |
3.8% |
|
Category |
Post Xmas Actuals |
Post Xmas Prediction |
Predicted Growth |
|
FOOD |
6006 |
6232 |
3.8% |
|
HH GOODS |
2466 |
2534 |
2.8% |
|
APPAREL |
1097 |
1140 |
3.9% |
|
DEPARTMENT STORE |
1034 |
1063 |
2.8% |
|
OTHER RETAIL |
2038 |
2111 |
3.6% |
|
CAFES |
1940 |
2060 |
6.2% |
|
National |
14582 |
15140 |
3.8% |