CommBank expects sales period to inject $4 billion into economy

Jo Mercer sales consultant, Nicole Iuga, looks forward to Christmas/Boxing Day sales as staff are excited alongside customers engaging in sales. Picture: Elesa Kurtz.
Jo Mercer sales consultant, Nicole Iuga, looks forward to Christmas/Boxing Day sales as staff are excited alongside customers engaging in sales. Picture: Elesa Kurtz.

Billions of dollars is touted to be injected into the economy with the imminent Boxing Day sales tipped to be a sugar hit for retailers battered by recent virus lockdowns.

Australians are set to hit the sales rack in droves this coming Sunday as spending forecasts set out by a major bank expect a near 15 per cent rise in the amount spent over the festive season.

Payment trends from Commonwealth Bank anticipate $4 billion will be spent during the Boxing Day sales, with the average spend per person sitting at $557, a jump of $70 from the prior year.

Further analysis from the nation's largest bank also shows a 10 per cent year-on-year jump in the number of people intending to go shopping, with savings being the biggest spending motivator.

CBA's pre-Boxing day survey also found close to a quarter of respondents were intending to hit the sales online instead of a physical shop.

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Figures from the Australian Retailers Association also show $404 million will be spent at Canberra shops, which is a 1.5 per cent increase compared to last year.

"We're forecasting people in the ACT to spend $404 million in the post-Christmas sales which is up 1.5 per cent on last year and 16.3 per cent on pre-pandemic levels in 2019," ARA chief executive Paul Zahra said.

"We're seeing high demand in stores and expect sales to be upbeat despite the Omicron threat."

Mr Zahra highlighted the Christmas trading period is the most critical period in the retail calendar and is where businesses can make up to nearly to two thirds of profits for the year.

He noted this period will be vital for a number of retailers which were forced shut during the Delta lockdowns.

National monthly retail trade figures dropped 2.7 per cent in July due to restrictions imposed to curb the spread of the Delta variant.

The initial onset of the pandemic in 2020 saw monthly retail trade drop by 17.4 per cent.

"Things are shaping up well for the businesses that are trying to make up for the substantial trading losses they incurred during the Delta lockdowns, with the pent-up demand for shopping set to continue through to next year," Mr Zahra said.

"Clothing, footwear and accessories is set to be one of the strongest performers in the post-Christmas sales - up 16.5 per cent on pre-pandemic levels in 2019."

CBA data also found men were more likely to visit a physical store than their female counterparts and 70 per cent of every dollar spent would be in-store.

This story Retail sales bonanza to inject billions first appeared on The Canberra Times.