Retailers boosted by $1.7 billion Boxing Day spending binge

Retailers received a major boost on Boxing Day with nearly $2 billion crossing the counter.

A difficult year has seen many retailers close down. Cuts to interest rates in November and December offered much hope to a sector dented by low confidence. But banking connectivity problems left consumers unable to use credit cards in the approach to Christmas, and poor weather in December has continually kept consumers away.

It is now hoped that Boxing Day will spark a renaissance in spending as the New Year approaches. A customary slash in prices saw consumers return en masse to the high street – all except in Adelaide, which will have to wait until next year for its first legal Boxing Day of trading.

Russell Zimmerman, executive director of the Australian Retailers Association, described the interest cuts as a beneficial Christmas present to consumers, whom he described as ‘coming out of hibernation’.

Last year, the move by retailers to cut prices ahead of Christmas backfired to a degree, diluting the enthusiasm for post-Christmas sales.

This year, discounts of up to 70% on large choices of stock have brought much stronger performance.

Sales are also set to benefit from the larger number of gift cards bought this Christmas, allowing consumers the choice of heavily discounted products. People are happier to give and receive cards to benefit more from their own choice and better value.

"It was perceived to be impersonal in years gone by", said Scott Driscoll, the national president of the United Retail Federation.

"Shopping around Christmas time isn’t based on the event of Christmas as it was before".

Are you set to take advantage of the post-Christmas spending rush? Check out the credit card listings at Which4U to see if a good deal could help you save on interest or earn benefits for your spending.

Joe Letts