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Australians saddling up and galloping to the sales as we enter the Year of the Horse - $15.1 billion expected to go through registers

1/01/2014

 

Peak retail industry body the Australian Retailers Association (ARA) and research partner Roy Morgan Research said shoppers were expected, as we move into the Year of the Horse, to saddle up and gallop in to stores as they spend $15.1 billion during post-Christmas sales from Boxing Day through to mid January – an estimated two percent rise on last year’s predicted sales of $14.8 billion.

ARA Executive Director Russell Zimmerman said 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.

“It is also great to see all states and territories predicted to experience positive growth this post-Christmas period, ranging from 2 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.

“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,” Mr Zimmerman said. 

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $258 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. Visit www.retail.org.au or call 1300 368 041

-ends-  For interview opportunities with ARA Executive Director Russell Zimmerman call the ARA Media Line T: 0439 612 556 or E: media@retail.org.au

 

Roy Morgan Research figures – post-Christmas:

 

State

Post Xmas Actuals (billions)

Post Xmas Prediction (billions)

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 (billions)

Post Xmas Prediction (billions)

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%

 


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