For the first ten days of November 2024, Australian retailers have scored a like-for-like sales increase year-on-year of 3.8 per cent alongside solid growth in gross margins against a backdrop of slightly higher prices and lower discounting.
This is according to new data from The Retail Score, which also shows that freestanding stores, online, and outlets were all trading up in these 10 days, indicating green shoots for retailers.
According to the software company, the recent lift can be contrasted with year-to-date numbers from July, where sales are down over 2 per cent, volume is down over 5 per cent and transaction counts are down 3.5 per cent.
“More interestingly, the average sell price is UP over 3.7 per cent YTD as are the Gross Margins % and the YTD drop in Gross Margin $ is only 0.6 per cent,” The Retail Score co-founder and director Wayne Rigney said.
These stats come from the software company’s recently launched performance and benchmark service called ‘The Retail Score Index’.
The early November jump comes ahead of an expectedly robust Christmas trade, where Australians are forecast to spend $11.8 billion on presents in 2024, up by $1.6 billion (or 15 per cent) on last year’s figures, according to new data from Roy Morgan and commissioned by the Australian Retailers Association (ARA).
Roy Morgan data also confirms that a majority of shoppers (53 per cent) have already purchased gits as of mid-October.
More than 16 million Australians will be buying Christmas gifts in total this year, up 1 per cent on 2023. On average, these shoppers are forecast to spend $707 each, which is up $61 on the average spend recorded a year ago.
ARA chief industry affairs officer Fleur Brown said this year’s trend of buying presents early is driven by a focus on value for money.
“With Australians continuing to battle a cost-of-living crisis, we know more people are planning ahead this year and carefully researching to find gifts at the best available prices,” Brown said.
“Overall peak season spending projections are at $69.7 billion, up 2.7 per cent on last year. This boost in spending is very welcome news - particularly for discretionary retailers who make up to two-thirds of their annual profits during peak season.
“It’s continuing to be an incredibly challenging year for retail, with slowed consumer spending coupled with rising costs of doing business.”