Retail groups say Christmas, New Year sales meet low expectations

Industry body Australian Retailers Association says sales over the Christmas and New Year period will likely meet or even exceed relatively low expectations, and the key shopping period is not yet over.

ARA executive director Russell Zimmerman says sales from Christmas onwards have been “strong, if not slighter stronger than expected,” meaning overall sales will likely reach the ARA’s target of $14.1 billion, up 2.4% on the previous period.

“All up, it’s probably okay. It’s not like the good old days where we’d get 6% annual increases, but it’s probably better than expectations.”

Zimmerman says Christmas trading was “reasonable across the board”.

“And the Boxing Day sales, although the 5am starts didn’t work well for the big stores, once it happened, it happened well.”

Zimmerman says clothing and footwear – two areas of concern going into the key shopping season – were not helped by a late start to summer.

But he expects the “buying mood” to remain for the next week or two as people mosey back from holidays.

With many workers not returning to work until mid- to late-January, this leaves plenty of opportunities for retailers to capitalise on the improved weather and relaxed mindset of holidaymakers.

Peter Strong, executive director of the Council of Small Business of Australia, says despite the book sector’s well-publicised woes in 2011, the Christmas period was actually a good one, with many customers missing the deadline for book deliveries heading into bricks and mortar stores.

“At Christmas, surprisingly the bookshops were in the main pleased,” Strong says.

“But what I’m hearing elsewhere wasn’t that good.”

“They’re not saying it was an absolute disaster, but it’s a mixture of things. People still aren’t spending, and the heat isn’t helping.”

The weeks before Christmas up until mid-January are key ones for retailers, accounting for up to 40% of revenue.