COLES TIPS CHRISTMAS CRACKER
COLES boss Steven Cain is expecting the supermarket’s best ever Christmas but is predicting the cumulative impact of six interest rate hikes to finally rein in consumer spending in the new year.
Unveiling Coles and Liquorland’s Christmas range on Thursday, Mr Cain said he believed Australian households would “push the boat out” for their spending on holiday season celebrations and then turn to focusing on household budgets in January or February as credit card bills land and many roll from fixed to new variable home loans.
“I think we’re pretty confident that it’s going to be definitely the biggest Christmas ever,” he said.
“And obviously what we are focused on is trying to cater for everybody out there no matter what their budget is, and that’s what this Christmas will be about.”
Many economists and analysts have argued that while the string of interest rate rises by the Reserve Bank have yet to lay a glove on what has been strong retail spending that would likely change by Christmas or the new year, as monetary policy has a lag or delay in forcing consumers to change their spending habits.
“In the new year once people get their credit card bills and if their home loans go up then there will be some belt tightening then,” Mr Cain said. Mr Cain also expected as interest rates start to bite that people begin to rein in their currently high expenditure at cafes, restaurants and takeaway meals, which would bring more customers back to its stores. “Every meal that they don’t eat out, they need to buy from a supermarket,” he said.
Mr Cain said this year’s Coles Christmas launch – featuring 151 new own brand products and 106 new exclusive products – was focused on easy entertaining, sustainability but also was crucially for all budgets.