Australians to spend up big this Christmas 2015

Australian Retailers Association (ARA) spokesman and executive director, Russell Zimmerman, said this month (November 2015) they are predicting that Australian consumers will spend 3.6 per cent more at retail stores on Christmas 2015 than in 2014. He says we will spend $46.7 billion in retail stores between 15 November and 24 December 2015 based on research they have undertaken with Roy Morgan Research. Australian Retailers Association has provided accurate pre-Christmas 2015 spending forecasts for more than 20 years.

Founded in 1903, ARA is the retail industry’s peak representative body representing Australia’s $284 billion retail sector, which employs more than 1.2 million people.

If ARA’s prediction is correct it indicates that the economy is slowly improving as consumer confidence is rising. ARA is excited about the rate of growth especially in the context of what have been low levels of consumer sentiment and increase in interest rates by the major banks in November.

“While the ARA would obviously be thrilled to see higher levels of growth, given the current climate and underlying factors, we’re confident that retailers will see a robust Christmas trade that builds on the amount spent across the country last year,” said Mr Zimmerman.

ARA and Roy Morgan Research have put together the projections based on factors such as unemployment and consumer sentiment. Last year they correctly predicted Christmas spending would reach $45 billion (a growth rate of 4.3 per cent from 2013). Actual sales hit $45.2 billion for the period.

“While the week before Christmas is traditionally the biggest shopping week of the year, there’s plenty of consumers who like to be prepared and get in early, with a good deal of Aussies starting to tick items off their Christmas 2015 lists from mid-November onwards,” he said.