News Articles

Christmas sales meet retail projections at $37 billion new, more credit-savvy consumer emerges

Peak retail industry body the Australian Retailers Association (ARA) said after very slow November Christmas sales, the Rudd stimulus package helped Christmas sales skyrocket in the last weeks of December to meet early projections of $37 billion nationally in retail sales.

According to ARA Executive Director Richard Evans, a two percent increase on the bumper 2007 Christmas period ($36.5 billion) was a great outcome.

"Considering all the negativity about the economy in the market in October and November, by the last two weeks of December, Australians were more confident about gift giving with reduced petrol prices, lowering interest rates and the Rudd Government's cash bonus," Evans said.

"From our research, we are also seeing a new type of consumer emerge - a more thrifty, credit-savvy, saving consumer. The lessons learnt from being burdened with high levels of credit card debt will mean in 2009 consumers will be in a much better cash position than we have seen previously.

"Over Christmas retailers saw more lay-bys being used as shoppers tried to avoid the hangover debt in February when bills are received. This all adds up to a healthier, guilt-free Australian consumer who will be ready to open up the purse strings in the coming months.

"As long as employment in the economy remains stable (and we must remember full employment is measured at five percent) retailers will remain optimistic of growth returning to the sector in April with significant growth expected from July. We ask all employers, not just retailers, to retain their staff for the sake of the economy," Evans said. 

According to ARA modelling and research among key sector retailers, Christmas sales for 2008 is as follows:

2008 National Christmas retail sales: $36.95 billion (projected $37.2 billion)

National category breakdown: food $14.78 billion, department stores $2.96 billion, apparel $2.59 billion, household $6.28 billion, hospitality $4.8 billion and other $5.42 billion.

State by state Christmas 2008 retail sales: 

NSW $12 billion (as projected), VIC $8.9billion (as projected), QLD $7.7 billion (as projected)

SA $2.6billion (expected 2.6 billion), WA $3.95 billion (expected $4 billion), TAS $776 million (expected 781 million), NT $369 million (expected $372 million), and ACT $702 million (expected $707 million)

The ARA has been publishing retail sales predictions using internal research modelling with consistent accuracy for over 15 years.

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

Options:

View Archives