The Australian Retailers Association is predicting a retail boom post-Christmas. In conjunction with Roy Morgan, the ARA have released forecasts of how much Australians are planning to spend in post-Christmas sales, and the figure is astounding.
According to the report, Australian consumers are expected to spend a record $21 billion in stores and online, which would be a likely increase of 2.1 percent on the previous year, and a 12.6. percent jump from pre-pandemic levels in 2019.
Breaking this down a little further, the Association predicts that $2.9 billion will be spent in the Hospitality sector, which would incur a 10.7 percent increase from 2020 – the strongest growth in any category.
In a similar vein, sales for Clothing, Footwear and Accessories are expected to increase by 6.9 percent, another strong bounce back for the retail sector.
“It’s great to see people out and about in great numbers enjoying some retail therapy after another year disrupted by Covid,” explained Paul Zahra, the CEO of the ARA. “We’re continuing to see a lot of pent-up demand for shopping after the Delta lockdowns. We’ve experienced a record-breaking Black Friday with sales exceeding expectations, and that’s provided businesses with strong momentum for this critical trading period.”
Further forecasts indicate strong sales growth for Tasmania and Victoria, increasing 8.6 percent and 6.6 percent from 2020, respectively.
“Our post-Christmas sales forecasts measure retail trade from Boxing Day through to January 15, and pleasingly retailers are expected to top last year’s record with over $21 billion set to be spent – up 2.1 percent,” Zahra continued. “All retail categories have recorded an increase in spending on last year, apart from Food, which is down slightly and not surprising given more people will be out socialising this year. Hospitality is set to thrive as a result – up 10.7 percent on last year’s post-Christmas period when the Covid threat was more severe, and the vaccines were yet to be rolled out.”
The Boxing Day sales are a key part of the retail calendar, Zahra explained, which retailers can expect to see ‘bumper’ sales. “However, challenges remain with staff shortages and ongoing supply chain issues, which may have an impact on the ability of retailers to [expedite] their financial recovery. We are working closely with government to ensure that any barriers to recovery are solved as quickly as possible,” he said.
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