Media Release

Bumper day of Boxing Day trading ahead - $2 billion spend forecast nationally

26-Dec-2016  - Retail Council

On what is tipped to be one of the biggest Boxing Day and Christmas sales periods on record, Australians are expected to spent over $7.5 billion in the first week of trading post Christmas. With a whopping 70 percent of shoppers surveyed aged between 18 and 34 likely to get in on the sales action, consumers are looking to maximise their value for money over this discount period.

“Australians are expected to spend over $2 billion on Boxing Day alone, which is remarkable considering not all stores are trading nationally. New South Wales and Victoria are leading the way, with a total of $1.1 billion expected to be spent across the two states on the 26th,” said Steve Wright, the Retail Council’s Acting CEO.

According to the Retail Council’s Christmas Spending Index, consumers are making the most of the great value on offer at this time of year. Given that not all stores trade on Boxing Day, especially in regional areas of some states, shoppers are using the online sites of retailers to complement their sales shopping experience, beating the crowds or long drives to selected shopping centres.

“Retailers are giving shoppers more opportunities to access bargains than ever before – with a bigger number of shops trading on Boxing Day, extended trading hours and increasing utilisation of online stores to give shoppers more choice.

“We’ve seen some retailers start their Boxing Day sales early, making their promotions available Christmas Day, so that the keenest of shoppers can get a step ahead in their shopping,” said Mr Wright.

“This year, we’ve seen over half of our survey respondents indicate they will participate in the post-Christmas shopping promotions – whether it be visiting their local shopping centres or department stores, or doing browsing online.

“Leading the trend here are the 18-34 year olds, with a huge 70 percent of those surveyed indicating they’d be likely to take part in the bargain hunt. Older consumers indicated they were less likely to take part, with only 35 percent of 55-74 year olds wanting to brave the crowds.”

This year, clothes, electronics and homewares are high on the most-wanted list for bargain hunters, with many setting themselves a higher budget for their sales spending than in previous years.

“Shoppers have boosted their sales-shopping budgets this year when compared with 2015. A majority of consumers budgeting from $100 to $500 for their post-Christmas spend.

“When surveyed on what they’re hoping to buy, clothing (73 percent), electronics (44 percent) and homewares (40 percent) were the highest scoring categories.* While most people focus their pre-Christmas spending on their loved ones, many shoppers use the sales period to pick up some necessities for themselves, which they usually wouldn’t splurge on.”

*Participants were able to nominate in more than one category, meaning that totals exceed 100 percent.

The below table provides a breakdown of forecasted spending by state on Boxing Day (26 December), and for the 6 days of trade between Boxing Day and New Years Eve (26 to 31 December).

($m)

NSW

VIC

QLD

SA

WA

TAS

NT

ACT

Total

Boxing Day

(26/12)

661

518

398

131

226

40

19

37

2030

Boxing Day to New Years Eve

(26/12 to 31/12)

2450

1920

1476

484

836

150

69

139

7523

CONTACT: Maryanna Vasilareas on 0409 437 433 or maryanna.vasilareas@fticonsulting.com

 


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Source: Retail Council

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