Retailers are rubbing their hands with glee as Christmas approaches, with Australians expected to blow more than $30 billion this festive season.

Apple products and gaming consoles are expected to top Christmas wishlists this year, giving electronics retailers a 56 per cent boost in December, according to research by IbisWorld.

Overall retail sales are expected to spike 35 per cent next month, up 5.5 per cent from last year, led by department store sales, which are forecast to bounce 94 per cent.

All retail categories should get a share of the spoils, but department stores see the best results because they’re a one stop shop for time poor shoppers, says IbisWorld retail analyst, Lauren Magner.

Shoppers are expected to snap up plenty of clothing, footwear and accessories as retailers discount to clear their inventory, Magner said, while all those Christmas parties mean strong food and alcohol sales.

But it’s not all Christmas cheer for retailers, she said.

“While this strong seasonal demand and forecast sales spike is set to subsidise weaker trading periods throughout the year, the Christmas period presents both opportunities and challenges for Australian businesses,” Magner said.

Retailers need to hire sufficient staff to cover the spike in demand but also be able to cut back once demand drops off after Christmas, she said.

Managing inventory is also important – you need to meet demand but overstocking could mean drastic discounting and profit loss, she warned.

Source: IbisWorld/ABS

AAP