Christmas spending spree starts

VICTORIANS are on a Christmas shopping charge, with sales growth tipped to head the nation.

Shoppers statewide will pump a predicted $12.7 billion into retail coffers from tomorrow until Christmas Eve, up 3.9 per cent on the same period last year.

Nationally, a whopping $50 billion will be splashed out, according to Roy Morgan Research forecasts for the Australian Retailers Association.

The festive season trade will be a much-needed boost for the industry.

“It is critical. Up to 60 per cent of most retailers’ turnover and profit is often made in the lead up to Christmas and postChristmas sales,” ARA executive director Russell Zimmerman said.

Victoria’s store variety and renowned fashion capital status was likely to attract some Christmas shoppers from interstate, he said.

While rising household bills and low wages growth had subdued spending in recent months, consumers were expected to start opening the purse strings.

“When it gets to Christmas there tends to be a refocus, now they are starting to free up and say we are going to spoil ourselves,” Mr Zimmerman said.

Retailer Gerry Harvey expects strong sales in the coming weeks and isn’t concerned by the expected boost to online shopping and potential arrival of Amazon before Christmas.

He is urging customers to get their shopping lists organised.

“If spending keeps going the way it is I’m expecting we will be up in November and December by 2.5 to 4 per cent,’’ Mr Harvey said.

“An awful lot of people won’t buy online in December because they will be worried that they might get the item or not.”

Almost half of Australians have already started buying presents, according to finder.com.au research.