Retailers brace for last-minute Christmas frenzy

Shoppers are set to embark on an unprecedented last-minute Christmas rush as retailers switch into festive overdrive.

Fashion and electronics are shaping as hot categories among gift-givers.

Nationwide spending is tipped to surge past $48.1 billion.

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Time-starved shoppers will this year be denied crucial weekend retail hours with Christmas Day falling on a Sunday. The timing is expected to make the frantic rush for presents later than ever.

Australian Retailers Association executive director Russell Zimmerman tells realcommercial.com.au: “It will be as late as it could possibly be this year”.

“I suspect we are going to see a genuine rush,” Zimmerman said.

Early Christmas trade has been strong in NSW and Queensland off the back of favourable weather while conditions in Victoria have kept spending more modest.

Tills in Western Australia and the Northern Territory have been quieter, with the lull linked to the slowdown in the mining and gas sectors.

Clothing retail is expect to be a major battleground this Christmas.

The Christmas shopping crush is expected to reach fever-pitch from December 19 with many consumers holding off on hitting the stores until they get their final pay cheque.

Most will wait until Christmas Eve to load up on fresh food.

Zimmerman says clothing and footwear are again proving popular, with global retailers like H&M and Zara now fighting it out with local brands.

Supermarkets were a battleground as Coles and Woolworths went hard on price to fend off upstart Aldi.

Christmas really is for all retailers what we call the grand final of the year

Nationally, Christmas trade from November 14 to Christmas Eve is forecast to increase 2.3% on last year.

About 7% of spending will be online.

“Retailers are telling me it’s trading very, very well in almost every area,’’ Zimmerman says.

“It’s really busy out there. Every Christmas tends to grow a little bit but probably the last three or four have been very, very strong and this will be no exception.”

Spending nationally is expected to soar past $48 billion.

Retail Doctor CEO Brian Walker, whose advisory firm expects Christmas and Boxing Day sales to top $60 billion in the month to January 15, says shopping centres are further extending opening hours as stretched consumers demand greater options.

Even some regional centres are expected to opt for 24-hour trading in the final countdown.

“The traditional Christmas has changed a lot,” Walker says.

“Christmas is getting later and later for retailers.”

Lower interest rates, a relatively stable local political environment and low unemployment are boosting shopper confidence, while competition between retailers has never been so fierce.

“There is plenty of product out there – there is more product in all of the categories than I can recall seeing before,” Walker says.

“Particularly in areas like fashion, general merchandise and electronics there is no shortage of product.”

“It means more choice than ever before – we’ve got more competition this Christmas among retailers.”

“Christmas really is for all retailers what we call the grand final of the year.”

“Many retailers can do up to 30% of business in that window – so there is a lot of focus on it.”