ARA points to spending cutbacks

Despite many retailers reporting a fall in Christmas trading, research shows tills could be boosted by a last-minute shopping blitz.

Consumer spending this festive period is significantly below that of 2008, new research would appear to suggest.

Figures released by the Australian Retailers Association (ARA) reveal that in the seven-day period ending December 18th more than half (54 per cent) of traders claim that sales were below the same period last year, with only one in ten stating that things have stayed the same.

Such a decline was attributed by ARA executive director Russell Zimmerman due to consumers adjusting their finances to the three successive interest rate rises by the Reserve Bank of Australia and a more conservative attitude towards spending.

However, it appears that a significant proportion of people could use cash, credit cards and other payment options in a last-minute Christmas shopping rush, as more than a quarter of Australians are set to spend more than $500 on December 23rd and 24th.

Those considering using Aussie credit this festive period may however be interested in recent comments by Diane Bos, general manager of Lifeline Community Care's Ipswich and West Moreton Division, who told the Queensland Times that people in the region should "spend responsibly over the holiday period" to ensure they will start the new year in a financially comfortable position.

By Kate Guthrie