Experts predict a record breaking post-Christmas sales period

Shoppers are expected to spend a whopping $21 billion this year in post-Christmas sales as pent-up demand for shopping looks to continue across the country.

Research from the Australian Retailers Association (ARA) in conjunction with Roy Morgan indicates a strong retail trading period from Boxing Day through to mid-January.

ARA CEO Paul Zahra said retailers have seen “a lot of pent-up demand for shopping after the Delta lockdowns”.

“It’s great to see people out and about in great numbers enjoying some retail therapy after another year disrupted by Covid. We’ve experienced a record-breaking Black Friday with sales exceeding expectations, and that’s provided businesses with strong momentum for this critical trading period,” he said.

“Our post-Christmas sales forecasts measure retail trade from Boxing Day through to January 15, and pleasingly retailers are expected to top last year’s record with over $21 billion set to be spent – up 2.1%. All retail categories have recorded an increase in spending on last year.

Zahra said the Boxing Day sales will kick start “a bumper trading period” but the sales period will not be without its challenges.

“The Boxing Day sales are a key event on the retail calendar,” he said.

“However, challenges remain with staff shortages and ongoing supply chain issues, which may have an impact on the ability of retailers to expedite their financial recovery. We are working closely with government to ensure that any barriers to recovery are solved as quickly as possible.”

Roy Morgan CEO Michele Levine said a combination of a majority vaccinated population and the public saving money during the lockdowns will see “a record summer retailing period”.

“Australians have rolled up their sleeves in record numbers over the last few months and with around 90% of all Australians aged 16+ now fully vaccinated, retailers are set to enjoy a bumper post-Christmas period,” she said.

“Australians have saved up many dollars over the last two years that they’ve been prevented from spending due to lockdowns, border closures and other restrictions on travel. While there still exists some uncertainty about travel conditions over the next few months, the loosened restrictions around the country do provide an opportunity for retailers looking to maximise their revenues.”