Australian consumers are continuing to spend up big.
According to the latest Mastercard SpendingPulse report, retail trade nationally increased by 25.1 per cent in August compared to the same month last year. Sales also surged 27.8 per cent by contrast to pre-pandemic levels.
The majority of retail categories posted large gains year-on-year, notably for discretionary spending. Compared to August 2021, apparel and fashion sales jumped 83 per cent, electronics by 66.2 per cent, home furnishings by 51.6 per cent and jewellery by 107 per cent.
Paul Zahra, CEO of the Australian Retailers Association (ARA), noted that retail sales retained a strong momentum but added that headwinds could be just around the corner.
“In August last year, our two largest states were in lockdown, so it’s not surprising to see discretionary retail categories record such significant growth compared to 12 months ago. What’s pleasing though is that sales are also up compared to pre-pandemic levels across most retail categories.
“It’s incredible to see retail sales perform so well in the face of cost-of-living pressures, however the coming months could prove to be more challenging with household savings starting to erode and mortgage holders being squeezed even tighter”.
On an upbeat note, research by CouriersPlease, the leading parcel delivery company, reveals that over 65 per cent of Australians are planning to purchase Festive Season gifts well ahead of Christmas.
During the key trading months of November and December 2021, Aussies spent more than $65 billion in-store and online – a $3 billion increase on the previous year.
According to the report, one in five shoppers have already secured their Christmas gifts, with a further third (32%) planning to do their Christmas shopping in October. By the end of October, 66 per cent of those surveyed will have completed their Christmas shopping.
Jessica Ip, Chief Transformation Officer for CouriersPlease, says that the research shows Christmas will be coming earlier for retailers, with a majority of Aussies shopping earlier than they did last year.
“I strongly encourage retailers to prepare for an influx of pre-Christmas shoppers earlier this year by ensuring they maintain healthy store levels”, she adds.
“It is also important to ensure their e-commerce stores are well-equipped to handle increased customer volumes, with a strong plan in place to avoid or resolve glitches or the potential for websites to crash quickly and early”.
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