FED:Xmas sales predicted at $39.9b

AAP General News (Australia)
12-02-2010
FED:Xmas sales predicted at $39.9b

EDS: Strictly embargoed until 0500 AEDT Thursday, December 2

CANBERRA, Dec 2 AAP - Retailers are feeling glum this Christmas, even though they can
expect a slightly more profitable sales period than this time last year.

The Australian Retailers Association predicts sales to top $39.9 billion between mid-November
and Christmas Eve, up from the $38.5 billion in same period in 2009.

The association executive director Russell Zimmerman said the global financial crisis
still has consumers treading lightly.

"This year has been tough for retailers with consumers still suffering from a post-GFC
hangover and being very careful about opening their purses," he said in a statement.

More than 60 per cent of retailers surveyed said they expected this Christmas to be
worse than last year.

But the thought has managed to deliver some early Christmas cheer, with the majority
of traders putting on pre-Christmas sales, two-for-one offers and complimentary gifts
with purchase.

Some 77 per cent of retailers also blamed increased interest rates for the lack of
consumer spend.

"Needless to say, retailers are welcoming signs from the (Reserve Bank of Australia)
that they will hold rates next Tuesday," Mr Zimmerman said.

AAP cj/jfm

KEYWORD: XMAS RETAIL (EMBARGOED)

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