Aussies to spend $14 billion in the next seven days: NRA
Aussie shoppers are expected to drop $14 billion in the next week as the final stretch toward Christmas day begins, according to the National Retail Association.
The news should come as a relief to retailers, NRA chief executive Dominique Lamb said, after an underwhelming year in retail.
“Although there is a growing trend that sees consumers knocking off Christmas shopping earlier than in previous years, the final week is still the most frantic time for retailers across the country with $2 billion spent per day,” Lamb said.
“The NRA is expecting the shopping frenzy to really ramp up as we kick-off the seven-day countdown until Christmas.”
New South Wales is set to bring in $4.6 billion of retail spending, while Victoria and Queensland shoppers will spend $3.7 billion and $2.6 billion respectively.
Western Australia will see $1.5 billion in spending, while South Australia brings in $930 million, Tasmania $270 million, the ACT $250 million and Northern Territory $110 million.
More than half of this spend could go to groceries, according to Accenture retail lead Michelle Grujin, who told Inside Retail the shift in spending was due to Australians wanting to provide a more “abundant” Christmas.
In terms of online, the NRA expects $1 billion in sales across the next week – with $650 million going to omnichannel offerings and $350 million going to pure-play retailers.
Lamb had previously stated that omnichannel retailers are likely to outperform pureplay competitors, being able to offer a unique in-store experience coupled with a savvy online sales avenue.
“Customers are now placing a greater emphasis on their experience at the shops, and not only traditional factors such as quality and price,” Lamb said.
“Those who are driving in modern retail offer interactive services that engage shoppers in new and exciting ways.”
In total, the Australian retail industry is expected to see $50.1 billion in sales across the entire holiday period – a 3 per cent bump on 2018’s figure of $48.6 billion.
However, the Australian Retailers Association and Roy Morgan said they expect the ongoing threat of bushfire to impact spending, with outgoing ARA executive director Russell Zimmerman expecting Christmas trade to be solid, if unspectacular.
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