Santa delivers on December for retailers

AUSTRALIAN retailers saw a jolly Christmas last year, with Australian Bureau of Statistics’ (ABS) official retail turnover figures for December 2015 growing by four percent year on year – a figure the Australian Retailers Association (ARA) has called incredibly pleasing.

This growth backs up a 4.2 percent year on year growth in November 2015, with Christmas gift buying at the heart of the boost in trade. Total retail spend for December 2015 was $24.8 billion.

Year on year figures provide the most accurate measure of the sector’s performance and are the figures used by most retail businesses in their own reporting. December 2015 sales showed no increase over November 2015, a result the ARA’s Executive Director, Russell Zimmerman has put down to soaring temperatures following the initial Boxing Day trade.

“Australian retailers will be very pleased with the annual increase in shoppers’ spend in December,” said Mr Zimmerman.

“December is the biggest month in the retail calendar in terms of sales and this considerable boost finishes off a year of strong increases for the industry.

“We’re hopeful the trend of steady growth will continue throughout 2016, with many retailers well positioned to leverage off these improvements with new innovations across online, omni-channel, and bricks and mortar stores.

“I think we’ll see 2016 become a year of business evolution for retail, with a host of digitally-based advancements enabling the merging of the online and offline shopping worlds into a more seamless experience.”

The biggest growth came out of household goods in December, with a 5.6 percent increase over December 2014, followed by department stores, with a five percent rise.

“Department stores across the board have picked up their act in the past 12 months, and I believe that’s reflected in these results,” Mr Zimmerman said.

Victoria saw the lion’s share of growth on a state basis at 5.5 percent, with Tasmania continuing its strong growth trajectory of the last few months, increasing sales by 5.2 percent.

“Even Western Australia which suffered from considerably low sentiment in the lead up to Christmas as a result of the demise of the mining boom managed growth of 1.2 percent. This is a great result for a state that has been struggling to adapt to vast economic change.”

In terms of online spend for December, the NAB Online Retail Sales Index indicates that e-commerce sales increased a whopping 11.2 percent on December 2014.

“E-commerce is a vital pillar of all retail business these days, and its double digit year on year growth is unsurprising when you look at how many retailers are now giving their customers the opportunity to shop online at their own convenience,” said Mr Zimmerman.

A total of 1$9.1 billion was spent online in 2015 according to NAB, 6.6 percent of the total retail market.

The Australian Retailers Association and Roy Morgan official retail spend figures for the pre-Christmas trading period from November 15 to December 25, 2015, will be available in the coming weeks.

YEAR ON YEAR RETAIL GROWTH (December 2014 to December 2015 seasonally adjusted)

By category:

Food, 3.2 percent; household goods, 5.6 percent; clothing, footwear and personal accessories, 4.5 percent; department stores, five percent; other retailing, 4.5 percent; cafés, restaurants and takeaway foods, 3.2 percent.

By state:

NSW, 4.5 percent; Victoria, 5.4 percent; Queensland, 3.1 percent; South Australia, 3.4 percent; Western Australia, 1.2 percent; Tasmania, 5.2 percent; Northern Territory, 0.8 percent; and Australian Capital Territory, 4.4 percent.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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