Retailing around the $51 billion Christmas tree 

WITH Santa and his reindeers scheduled to leave the North Pole in just a few short weeks, the Australian Retailers Association (ARA) and Roy Morgan are predicting Australians to spend more than $51 billion over the Christmas trading period from November 9 to December 24, 2018.

The ARA expects Aussie shoppers will be dashing through local shops to purchase the ultimate gifts for their friends and family this Christmas, and Russell Zimmerman, executive director of the ARA said shoppers will be turning to retail stores to tick presents off their lists.

“With the festive season commencing in less than two days, most Aussies will be in the process of setting-up their Christmas lights and decorating their Christmas trees in preparation for the upcoming festivities,” Mr Zimmerman said.

"Likewise, retailers have also followed suit, embellishing their store windows with captivating displays and offering a variety of new and exciting products for consumers to spoil their loved ones with.”

With the ARA and Roy Morgan expecting shoppers to increase their spending in the ‘Other retailing’ category by 2.7 percent, products from the Electronics and Hi-Fi categories are projected to be highly sought-after this Christmas, with Ryan Murtagh CEO at Neto explaining the uprise in popularity from this category.

“Being connected is now cheaper, easier and cooler than ever before. With new gadgets and technology hitting the high street, there is now a marketplace for both tech-savvy youngsters and adults to indulge in these products, providing significant opportunities for retailers who operate in this category,” Mr Murtagh said. 

According to the Neto State of E-Commerce report, the electronics category saw a 22 percent year-on-year growth in 2018.

With the average basket size for this category in excess of $116, Cameron Trainor, managing director at JB Hi-Fi, said the demand for personal devices including smartphones, tablets, laptops and advanced internet of things (IoT) connected devices like Google Home and Smart TVs have contributed to the high volume of rapid growth in the electronics category.

“Gaming, fitness accessories, smart home technologies and robotics are amongst the most popular items for consumers to purchase this Christmas. Our retailers are stocked and ready to go with innovative products to stimulate consumer preferences ahead of the upcoming festive season,” Mr Trainor said.

Hitwise’s Weekly Internal Site Searches data from eBay reveals gaming consoles, including Nintendo Switch and Xbox One, are the top trending products for Christmas, with wireless headphones and drones amongst the top 10 most popular searches, the ARA believe retailers who specialise in electronics will have a bountiful Christmas this year.

“As mentioned in Neto’s State of E-Commerce report, the electronics and hi-fi markets are worth a considerable $3 billion, and the ARA suspect gaming consoles and smart home technology products will be flying off the shelves this Christmas,” Mr Zimmerman said.

“Christmas is the season of giving and with a fantastic range of technology on offer this festive season, Christmas trees across Australia will be filled with new and exciting and gifts to unwrap on the big day.”

ARA Roy Morgan Pre-Christmas Sales Predictions

November 9 – December 24, 2018

2018 Pre-Christmas Sales Growth by Category

State	2017 Pre-Christmas actual results ($mil)	2018 Forecast Pre-Christmas sales ($mil)	Predicted Growth
FOOD	20163	20908	3.7%
HH GOODS	8757	8931	2.0%
APPAREL	3906	4028	3.1%
DEPARTMENT STORES	2935	2943	0.3%
OTHER	7127	7321	2.7%
HOSPITALITY	7117	7348	3.2%
NATIONAL	50005	51479	2.9%

[ARA / ROY MORGAN]

 

2018 Pre-Christmas Sales Growth by State

State	2017 Pre-Christmas actual results ($mil)	2018 Forecast Pre-Christmas sales ($mil)	Predicted Growth
NSW	16132	16629	3.1%
VIC	12843	13512	5.2%
QLD	9907	10071	1.7%
SA	3320	3422	3.1%
WA	5395	5366	-0.5%
TAS	998	1038	4.0%
NT	495	501	1.2%
ACT	914	940	2.9%
NATIONAL	50005	51479	2.9%

[ARA / ROY MORGAN]

https://www.retail.org.au/christmas-predictions/

Neto’s 2018 State of eCommerce Report

Hitwse’s Hot Holiday Products and Top Toys.

About the Australian Retailers Association:
Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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