Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 6 January 2016

Shoppers shopping up a storm

Frenzied frenzy

Having reported record Boxing Day sales for 2015, a rapid fire release from the Australian Retailers Association backed up to report that Aussie consumers are continuing to "shop up a storm", with retailers on track to ring up $16.8 billion of sales in the post-Christmas period to January 15.

"We’ve seen shoppers continue their spending frenzy right throughout the period and into the New Year!" enthused ARA executive director Russell Zimmerman, albeit possibly without an exclamation mark. 

I note in passing that January 15 is still some time in the future, and therefore some caution should be exercised in interpreting these numbers.

Equity mate

The ripper result is evidently in part an outcome of the wealth effect of dwelling price gains.

Consequently Victoria (up 5.6 per cent to $4.2 billion) and New South Wales (up 3.8 per cent to $5.3 billion) lead the way, but in fact growth is expected to be reasonably solid across most states and territories. 


Winning categories of spend are expected to includ food, household goods, apparel, department stores, hospitality...actually, it's just all categories (and "other" in particular).


"It's great to see shoppers out in force at retail stores!" rhapsodised Zimmerman (OK it's reported speech - he possibly articulated this view matter-of-factly, to be fair).

Indeed, a fine result which underscores relatively comfortable mortgage repayments* in the present low interest rate environment, and zippy consumer confidence.

:o)

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*on average, as a share of gross disposable income.