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Retailers set for $37.2 billion in Christmas sales - Santa’s Bag Stocked with Tradition this Year

With interest rates at their lowest since December 2003, petrol prices on the decline and the Rudd Government’s stimulus package landing in pockets, consumers have cash to spend after some tough months earlier in the year. Retailers are optimistic about sales during the festive season but what will fill Santa’s bag this year and how big will it be?

Peak retail industry body the Australian Retailers Association (ARA) said after struggling for most of the year, retailers were confident about the 2008 Christmas period with an expected year-on-year growth between two and 2.5 percent, totalling $37.2 billion coursing through the economy via retail sales.

ARA Executive Director Richard Evans said the retail cycle hit its peak last Christmas but retailers were still expecting to increase on last year's bumper $36.5 billion Christmas spend.

"Retailers are optimistic about solid sales during the holiday season, although growth may not be as significant as last year's decade-strong Christmas trade - there is growth nonetheless. This is good news for retailers who have been suffering all year," Evans said.

"The results of the Deloitte ARA Christmas Retail Survey suggest it will be a traditional Christmas this year with popular gift ideas including books (19.3%), followed by clothes/shoes (16.2%), music and CDs (14.8%), videos/DVDs (14%), cosmetics and perfumes (10.6%), jewellery and watches (8.9%), entertainment tickets (8.8%) and sports equipment and sportswear (7.3%).

"In the toy department outdoor toys and board games (33.8%) and traditional gifts including dolls, toy cars and trains (25.4%) will be stuffing many a stocking. But kids can rest assure Santa's sack will feature plenty of electronics with MP3 players and IPods (14.7%), Nintendo Wii's(13.4%) and computer games (12.9%) top of the list.

"Consumers who had limited discretionary spend earlier in the year now have money in their pockets to responsibly enjoy some Christmas retail therapy and embrace the gift giving spirit of Christmas without relying on credit.

"No matter what is on the Christmas shopping list, now is the time for consumers to start their Christmas shopping because there are a lot of bargains to be had at the moment." Evans said.

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.

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