Economy

Retailers counting on Christmas as Gen-Y prepares to spend up big

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Retailers remain confident consumers will open their wallets this Christmas, with 43% of retailers declaring they expect to better or equal last year’s sales. Almost 60% of these optimistic entrepreneurs expect sales will jump by up to 20%.

Retailers remain confident consumers will open their wallets this Christmas, with 43% of retailers declaring they expect to better or equal last year’s sales. Almost 60% of these optimistic entrepreneurs expect sales will jump by up to 20%.

Results from the Australian Retailers Association Christmas Expectations survey also shows 43% of retailers are planning pre-Christmas sales, while 67% are planning print, television and radio advertisements.

“The fact that over 48% of retailers expect store traffic this Christmas season to be the same or better than last year shows confidence and an understanding of economic peaks and troughs within the sector,” ARA chief executive Richard Evans says.

“Retailers have had a tough year and they are working hard to boost consumer sentiment and give shoppers the confidence to spend responsibly this Christmas, with over 43% of retailers planning pre-Christmas sales.”

The survey comes as new ING research reveals Generation-Y – consumers aged between about 18 to 28 years – will spend more on Christmas shopping than other groups.

While the research shows they will spend an average of $220 on themselves, 37% of Gen-Y respondents claim they will spend more on their relatives this year than last.

They will spend $245 on average for a partner, and $264 for a close family member, while respondents from other generation groups expect to only spend $189 and $196 respectively.

But the survey is crushing stereotypes – 66% of Generation-Y say they will not use a credit card to purchase Christmas gifts, compared to 42% of the general population.

Evans says retailers need to take advantage of cashed up spenders. The lowest interest rates since 2003, lower petrol prices and next month’s stimulus package taking effect will create “an influx of cash” for the holiday season, he says.

“Now is the time for consumers to start their Christmas shopping because there are a lot of bargains to be had at the moment… retailers have been suffering all year and now they’re calling on consumers to embrace the gift giving spirit of Christmas.”

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