Retailers bet on big Boxing Day sales as shoppers delay belt tightening

Shoppers are expected to temper their spending from the start of next year as they adjust to months of mortgage rate hikes and soaring inflation, but retailers are tipping they will be keen for one last round of retail therapy first.

Australia’s shopping addiction looks set to continue with retailers expecting consumers to spend a record $23.5 billion during this year’s Boxing Day sales and the first weeks of the new year, mainly on hospitality and clothing.

“Post-Christmas, Australian’s typically turn their minds to purchases for themselves and their household. It’s been a tough year for many, and this year we are seeing what we are calling ‘freedom’ spending, where people reward themselves after an intense and challenging period,” the Australian Retailers Association (ARA) chief executive Paul Zahra said.

Forecasts from ARA and Roy Morgan predict Victorians will fork out $6.1 billion between Boxing Day and January 15, an 8.2 per cent increase on last year.

In New South Wales shoppers are expected to spend $7.4 billion, a 9.5 per cent jump.

Australia’s department stores, which have long been a staple of the Boxing Day shopping season, are expected to benefit over the next few weeks as sales increase 8.9 per cent to $1.1 billion over the post-Christmas period, according to the forecasts.

Finder data predicts the average shopper will spend $375 on the sales events, with clothing and shoes and electronics key categories of focus.

There’s a chance there could be better sales deals on offer over the Boxing Day period than earlier in the year, too, with retail experts predicting earlier this month that stores will be looking to clear any excess stock before a spending slowdown hits later in 2023.