Christmas sales off to solid start

 

christmas, shopping, trolley, gift, decorationThe Christmas sales period is off to a strong start for Australian retailers, with spending rising five per cent, seasonally adjusted, in November compared to November 2013.

According to the latest trade figures by the Australian Bureau of Statistics (ABS), consumers spent $23.765 billion in November, however, it was the slowest monthly growth since August, with sales figures up by just 0.1 per cent compared to October 2014, which recorded monthly growth of 0.4 per cent.

Cafes, restaurants and takeaway food services recorded the highest amount of growth for the month at 0.8 per cent, followed by food retailing, 0.6 per cent.

Department stores remained unchanged in November; while sales in other retailing declined by 2.1 per cent; followed by clothing, footwear, and personal accessory retailing, 0.7 per cent.

Northern Territory saw an increase in sales by 1.6 per cent; followed by the ACT, 1.3 per cent; Tasmania, 1.1 per cent;  South Australia 0.4 per cent; Victoria, 0.4 per cent; and Queensland, 0.1 per cent.

New South Wales and Western Australia reported month on month falls of 0.2 per cent and 0.1 per cent respectively.

Australian National Retailers’ Association (ANRA) CEO, Anna McPhee, said after six consecutive monthly rises in retail spending, this sustainable pattern in retail sales growth is good for the economy, on the back of sound fundamentals of low interest rates and employment growth.

“Retail sales have been growing since September 2013 and it’s pleasing to see that retail sales have almost returned to long term average growth levels not seen since 2008,” McPhee said.

“The retail sector’s contribution of around four per cent to the economy can be improved if government’s deregulate trading hours resulting in jobs growth”.

The Australian Retailers Association forecast $45 billion would be spent in pre-Christmas sales from November 5 until December 24, representing a 4.3 per cent gain during the same period in 2013.

Russell Zimmerman, executive director of the ARA, said retailers still remain hopeful its projected retail figure will be achieved.

“We won’t be able to confirm the actual pre-Christmas spend until December retail figures are released next month. However, after speaking with retailers across the country, many reported a fairly slow start to Christmas sales in November due to the reluctance of consumers to start their holiday shopping early. As usual, consumers left most of their shopping until the last minute,” Zimmerman said.

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