Shoppers tipped to splash cash in Boxing Day spree
Australians will spend $1.6 billion on Boxing Day sales alone as budget-conscious shoppers turn to bargains despite rising cost of living pressures.
According to data from the Australian Retailers Association and Roy Morgan, sales are expected to increase by 4.3 per cent, which will provide strong year-end momentum for retailers.
It is estimated that shoppers will spend $3.8 billion by the new year, and the increase in spending is expected to continue next week.
Chris Rodwell, the association’s chief executive, said early Christmas buying and a solid increase through to December had created a strong platform for Boxing Day trading.
“Retailers are finishing the year on solid foundations,” he said.
“The growth we are seeing highlights both the resilience of the sector and the enduring appeal of Boxing Day as a leading discount event.”
The most popular items the following Christmas are expected to be household goods, with sales forecast at $476 million; followed by clothing, shoes and accessories with sales forecast of $226 million.
Accommodation expenditures are expected to increase by 6.8 percent compared to last year, reaching 141 million dollars.
Discount shoppers are urged to support local retailers during the festive spending season; Mr Rodwell said each purchase helps fund local jobs, education, wages and community investment.
“Ultra-low-cost offshore platforms such as Temu and Shein cannot meet this contribution and cannot be held accountable to the same standards,” he said.
ANZ chief executive Kate Britton said strong spending momentum was expected, driven by competitive pricing, increased availability of online deals and customers’ desire to snap up discounts and maximize value over the festive season.
“We are seeing a strong trend towards value-focused shopping, with major sales events such as Boxing Day playing a central role in purchasing decisions,” he told AAP.
“Retailers are responding to the sales season by leaning in more than ever before, offering highly competitive deals both in-store and online, reinforcing this behavior.”
ANZ estimates shoppers will pour $5.1 billion into the economy during the holiday period, which runs until January 5.
While spending generally moderates after the festive peak, Ms. Britton said spending remains slightly elevated as consumers enjoy holiday experiences, travel and prepare for the year ahead.
“The spending boom provides a significant boost after the Christmas period and helps retailers clear seasonal stock, supporting cash flow and preparing businesses for the new year,” Ms Britton said.
“The increase also benefits industries such as hospitality and tourism, making Boxing Day a key driver of activity for businesses across the country.”
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