The National Retail Association (NRA) has unveiled its Christmas spending forecasts, painting a much brighter picture than other experts have been predicting.
Earlier this week, annual joint ARA/Roy Morgan pre-Christmas predictions for 2019 suggested retail would be "unspectacular".
Meanwhile, the St George Christmas Spending Report noted that Australian households are "slamming the brakes on Christmas gift giving" this year with almost one in two Aussies (43%) setting spending limits on gifts to family and friends, and almost a third (31%) planning to give fewer gifts this year.
However, the NRA has revealed that shoppers are predicted to splurge more than $50,000 per minute in online purchases as part of a $50 billion spend across all retail.
The Christmas trade period – encompassing the second-half of November and all of December – is the busiest time on the retail calendar, with blockbuster sales events as consumers stampede to the shops.
NRA CEO Dominique Lamb said that a large portion of successful modern retailers are utilising both in-store and digital avenues to maximise revenue from Christmas spending.
“Last week kicked off the official Christmas and Boxing Day trade period and it’s set to be another blockbuster holiday season with shoppers reaching for their wallets to stock up on presents, fresh food and paraphernalia,” Lamb said.
“The NRA is forecasting another record spend this Christmas, with breakthrough sales across both bricks & mortal and online retail.
“Shoppers are set to splurge an average of $54,347 per minute in online sales alone, with digital events such as Cyber Monday enticing Aussies with bargain prices. The total digital spend will reach $3.6 billion over the six weeks.
“But there will also still be plenty of action in traditional, physical stores with total retail spend forecast to easily surpass the $50 billion barrier. Consumers will again stampede shopping centres in the lead up to Christmas, and Boxing Day will remain another signature event on the industry calendar.
“We anticipate that this holiday season will see businesses who offer a unique in-store experience, coupled with a savvy online sales avenue, to be the ones who really break new ground.”
Each state and territory is forecast to record increased Christmas spending compared to 2018 figures, with an increase of 3% nationwide. Lamb also noted that new trends in modern retail are seeing businesses being forced to keep pace with changing customer behaviour.
“It’s a vital time of year for retailers across the nation," Lamb said. "A bumper Christmas harvest not only has a positive impact on the bottom-line, it can also help sustain many smaller operators during quieter periods.
“In 2019, shoppers can research and purchase items from the comfort of their own home via everyday accessories such as laptops, iPads and iPhones. Changes in consumer behaviour have led to new phenomena during the Christmas period such as Black Friday and Cyber Monday.
“Customers are now placing a greater emphasis on their experience at the shops, and not only traditional factors such as quality and price. Those who are thriving in modern retail offer interactive services that engage shoppers in new and exciting ways.”
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