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A new research by IBISWorld released on 24th November reports that a record 30 billion Australian dollars or the equivalent 26 billion US dollars will be spent by Australians this coming Christmas season.
Said report predicted an increase in overall retail
sales by 35% in December, which is a 5.5% increase from last year’s record.
Sales in department stores are to lead and forecasted to skyrocket to 94%.
Apple products which include iPhones and iPads may be
the frontrunner, according to the report, being the most popular and
sought-after products this time of year. Electronic retailers are expecting a
56% boost in trading activities.
The strong seasonal demand and projected sales
increase will likely subsidize weaker trading periods throughout the year, as
the Christmas season presents both challenges and opportunities for many
businesses in Australia, explained senior analyst of IBISWorld, Stephen
Gargano.
Particularly at this time of year, department stores
are typically a one-stop-shop where they try to have a range of consumer goods
which the buying public may want or be looking for during this season. And
having almost everything shoppers would want for Christmas becomes their edge
as consumers who don’t have the luxury of time to go hopping from one store to
the other in search of the items they need, would opt to shop in just one store
which they know most likely has everything. These are the consumers that would
be shopping for Christmas gifts and holiday needs.
Retailers can also take advantage of the high demand
and high volume of shoppers during the Christmas sales period to clear their
inventory especially in their clothing, footwear and personal accessories by
offering special promotional discounts. This strategy would expectedly result
in a 66.2% increase in revenues from clothing retailing in December as shoppers
take advantage of discounted prices to update their own personal clothing
requirements.
More pronounced will be the increase in revenue from
footwear sales and accessory retailing sections, with an expected increase by
76.7% which is attributed to higher spending of consumers on popular gift ideas
such as watches, and jewelries.
Gargano also noted that December spending in liquor
retailing and restaurants are also expected to increase during this Christmas
shopping period. Spending on liquor is expected to rise by 59.4% and this would
be driven by demands from various Christmas parties occurring in many different
places in the country. Alcohol consumption is always expected to increase
throughout the holiday period. Restaurants on the other hand get busy with
bookings for Christmas functions by corporations and families, where revenues
are expected to grow by 24.9% only for this holiday season.
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