The Australian Bureau of Statistics reported that business turnover rose in the majority of industries during October and it is predicted that as restrictions continue to ease, it will continue on its trajectory in the new year.
The Australian Retailers Association said it is expecting a record $21 billion, a rise of 2.1 per cent, to be spent starting from the Boxing Day sales as pent-up consumer demand is unleashed.
The biggest spend is likely to be in the hospitality sector, according to Roy Morgan, which is forecasting a 10.7 per cent rise to $2.9 billion from the previous year. The clothing, footwear and accessories sector is also continued to increase by 6.9 per cent.
Manpreet Singh, head of business indicators for the ABS said the strong monthly rise in accommodation and food services was driven by some large increases for pubs, clubs and restaurants, as turnover began to rebound from low levels as COVID-19 restrictions eased. Accommodation businesses such as hotels generally saw more modest rises.
Business turnover in arts and recreation services also increased as venues, particularly in NSW, were able to resume operations.
ARA chief executive Paul Zahra said retailers have strong momentum in the lead-up to Christmas that is predicted to continue into the new year.
“All retail categories have recorded an increase in spending on last year, apart from food, which is down slightly and not surprising given more people will be out socialising this year,” he said.
“However, challenges remain with staff shortages and ongoing supply chain issues, which may have an impact on the ability of retailers to expediate their financial recovery. We are working closely with government to ensure that any barriers to recovery are solved as quickly as possible.”
Roy Morgan CEO Michele Levine said that although there still exists some uncertainty about travel conditions over the next few months, the loosened restrictions around the country do provide an opportunity for retailers looking to maximise their revenues and tap into what is forecast to be a record summer retailing period.
