Aussies planning to spend more this Christmas

Written on the 5th of December 2008 by Australian Retail Association

Peak retail industry body the Australian Retailers Association (ARA) said new research released today in the Deloitte ARA Christmas Retail Survey showed almost 68% of consumers are planning to spend the same or more during the Christmas season compared to last year.

ARA Executive Director Richard Evans said consumers who had limited discretionary spend earlier in the year now have money in their pockets as they look forward to responsibly enjoying some Christmas retail therapy after some tough months.

 "The constant ‘gloom and doom' messages from analysts about the state of the economy have lead to over 62 percent of respondents mistakenly believing Australia is in a recession at the moment. These results are a timely reminder of the Reserve Bank of Australia's recent comments that consumers shouldn't give in to the gloomy talk on the economy.

"Despite an overly negative outlook on the economy at large, shoppers are still ready to open their wallets this Christmas with over 55 percent planning to spend the same amount of money as last year on Christmas gifts and over 12 percent planning to spend more.

"Over one third of respondents said they were going to spend between $250 and $500 on Christmas presents and another third plan to spend up to $1000 on gifts for friends and family.

"Retailers are optimistic about solid sales during the holiday season, although growth may not be as significant as last year's decade-strong Christmas trade.

"Budget-conscious consumers are planning to wait for the post-Christmas sales, with 15.4 percent of consumers indicating they would complete their shopping after Christmas day. The good news is Santa has come early for savvy shoppers this year with 43 percent retailers offering generous pre-Christmas sales this year*," Evans said.

"Now is the time for consumers to start their Christmas shopping because there are a lot of bargains to be had at the moment. With interest rates at their lowest since December 2003, petrol prices on the decline and the Rudd Government's stimulus package landing in consumers' pockets on December 8, there will be an influx of cash in pockets for the holiday season. Retailers have been suffering all year and now they're calling on consumers to spend responsibly - without relying on credit - and embrace the gift giving spirit of Christmas," Evans said.

Find out more at the ARA website, www.retail.org.au.