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OZ Retail's $42 Bn Xmas Boost

By Oonagh Reidy | Wednesday | 13/11/2013

Consumers to spend $42.1 billion pre-Christmas

Latest research by Roy Morgan suggests retailers are in for a bumper Christmas, with consumers set to spend over $42 bn on food, clothes and personal accessories. 

This represents a 3.3% jump from 2012, and includes internet as well as bricks and mortar sales, since all major (and minor) retailers now sell online, ARA rep told CN.

The $42.1 bn windfall will be spent from 14 November to 25 December on foods, clothes and household goods including technology, including sales from Click Frenzy ecommerce 24 hour sale which kicks off next Tuesday. 

The amount spent on tech, is included in 'Household Goods' figure of just over $7m - up 3% on 2012, while shoppers will drop $3m in Dept. stores like Myer. 

Retailers could count on some steady improvement in sales over the Christmas period, says ARA Executive Director Russell Zimmerman.

 "The 3.3 percent growth may result in shoppers starting their Christmas shopping a little earlier this year, rather than leaving it until late December. The week before Christmas will remain the busiest time for pre-Christmas shopping, and most lucrative time for retailers."

Adobe predicts that the biggest online shopping day for Australia will be 'Green Monday' - the second Monday in December -when Internet sales are expected to increase 250%.

Mobiles and tablets continue to play a key role in the growth of online shopping, with many shopping both on and offline simultaneously. Retailers with the most competitive prices will secure the most sales, says ARA boss. 

"The practise of physically shopping in store and comparing prices online, or 'showrooming,' is also a growing trend and something that retailers need to think about," he warned. 

Food and hospitality are expected to account for a significant percent of the $42 bn, while department stores, clothing and personal accessories may rely on last minute Christmas sales and promotions for any significant growth in sales.

All states and territories are likely to experience growth during 2013 pre-Christmas period.

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