The Retail Council has forecast retail spending in the lead up to Christmas will be $35 billion, according to its annual Christmas index released today.
“This year’s forecasts indicate retail is in a slightly stronger position to build on last year’s performance and is on target to contribute more than 4.5 per cent to Australia’s GDP,” said Retail Council CEO, Anna McPhee.
“Nationally, $35 billion is expected to be spent in the lead up to Christmas.”
Retailers in NSW are expected to see $11 billion in spending, with Victoria expecting $8.7 billion, the Retail Council’s Christmas Spending Index shows.
“Online purchases continue to be an important part of the retail offering, particularly at Christmas and are expected to make up around 16 per cent of total sales over the period,” said McPhee.
The Retail Council’s forecast covers retail spending for the 30 days to Christmas.
The Australian Retailers Association (ARA) forecast $46.7 billion will be spent during the official Christmas trading period from November 15 to December 24. The National Retailers Association (NRA) also signalled a strong sales with their prediction of $44.5 billion to be spent in the pre-Christmas period.
The Retail Council recently surveyed shoppers on Christmas shopping intentions and found a majority of shoppers plan to do most of their Christmas shopping in the coming weeks and go right up to Christmas Eve.
“In the week to Sunday we are projecting total sales of $5.25 billion as shoppers turn their thoughts to Christmas preparations. Sales are expected to build week on week to 24 December,” said McPhee.
The increase in spending will boost retail employment figures in order to cope with shopping demand.
“To help service increased consumer demand over the Christmas period the retail sector creates an additional 30,000 jobs on average at this time of year, as well as providing extra hours to existing retail workers,” said McPhee.
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