Invest
Record consumer spending set to continue after Christmas
Australian shoppers are expected to maintain record levels of spending.
Record consumer spending set to continue after Christmas
Australian shoppers will spend a record $21 billion during post-Christmas sales, according to forecasts from the Australian Retailers Association (ARA) and Roy Morgan, continuing a record-breaking shopping season for local retailers.
Spending in stores and online between Boxing Day and 15 January is forecast to be 12.6 per cent higher than before the pandemic in 2019 and 2.1 per cent higher than in 2020.
“It’s great to see people out and about in great numbers enjoying some retail therapy after another year disrupted by COVID,” said ARA chief executive Paul Zahra.
“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.”
Data from NAB indicated that over $8 billion was spent between Black Friday and Cyber Monday last month, beating predictions by more than $2.5 billion.
The National Retail Association previously estimated that $60 billion would be spent during the pre-Christmas shopping period, with a similar forecast made by the ARA.
During the post-Christmas period, the ARA and Roy Morgan expect spending on hospitality will increase by 10.7 per cent to $2.9 billion compared to last year, while spending on clothing, footwear and accessories is expected to rise 6.9 per cent to $1.7 billion.
Food was the only category where spending is expected to fall with a dip of 1 per cent to $8.4 billion.
“Australians have saved up many dollars over the last two years that they’ve been prevented from spending due to lockdowns, border closures and other restrictions on travel,” said Roy Morgan chief executive Michele Levine.
“While there still exists some uncertainty about travel conditions over the next few months, the loosened restrictions around the country do provide an opportunity for retailers looking to maximise their revenues and tap into what is forecast to be a record summer retailing period.”
Among the states and territories, Tasmanians are expected to increase their spending the most compared to 2020, with forecasted growth of 8.6 per cent.
Higher spending is also expected in Victoria (6.6 per cent), Western Australia (3.3 per cent), South Australia (2.9 per cent) and the ACT (1.5 per cent), while spending will remain relatively flat in NSW (0.4 per cent) and fall slightly in the Northern Territory (-0.9 per cent) and Queensland (-2 per cent).
“The Boxing Day sales are a key event on the retail calendar and with the states and territories staying committed to their reopening plans, we can look forward to a bumper trading period,” said Mr Zahra.
“However, challenges remain with staff shortages and ongoing supply chain issues, which may have an impact on the ability of retailers to expediate their financial recovery. We are working closely with government to ensure that any barriers to recovery are solved as quickly as possible.”
RELATED ARTICLES
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
Spending
Moneysmart study reveals Gen Z women more concerned about finances than men
A new research conducted by ASIC’s Moneysmart has unveiled the heightened levels of stress and concern regarding finances and the cost of living among Australian Gen Z women compared to their male ...Read more
Spending
The cost of politeness: Aussies out of pocket by $1,350 due to 'awkward tax'
It's the time of year when Australians dive into their pockets for festive events and gatherings, yet a recent study by PayPal suggests that many are too polite, or perhaps too embarrassed, to ask for ...Read more
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. Read more
