What Christmas retail boom? Turnover plummets 4.2% in December

author-avatar By
on January 22, 2021
What Christmas retail boom? Turnover plummets 4.2% in December

Retail turnover plunged by 4.2% in December 2020, despite expectations of a Christmas retail boom.

Australians look to have taken a more cautious approach to their spending over the Christmas period, with retail turnover down by 4.2% according to preliminary retail figures released today by the Australian Bureau of Statistics (ABS).

It comes off the back of strong retail sales in November: Turnover spiked by 7.1%, led by a spending surge over the Black Friday and Cyber Monday weekend

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Lender

000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Take money out at any time without affecting your bonus rate.
  • Open up to 10 Save accounts and get bonus interest on all of them, including shared Save accounts.
  • Get bonus interest on a combined balance of up to $250K across all your Save accounts.

Save Account

  • Take money out at any time without affecting your bonus rate.
  • Open up to 10 Save accounts and get bonus interest on all of them, including shared Save accounts.
  • Get bonus interest on a combined balance of up to $250K across all your Save accounts.
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
A WELCOME RATE FOR 4 MONTHS
A WELCOME RATE FOR 4 MONTHS

Savings Account (Amounts < $250k)

    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    High Interest Savings Account (< $250k)

      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Savings Maximiser (<$100k)

        05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Goal Saver

          DailyMonthly02500$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          Saver Account (<$250k)

            020000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

            Boost Saver (< $250k)

              400$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

              Easy Saver

                001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                Growth Saver ($1 - $25k)

                  000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                  Growth Saver Account

                    4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                    Online Saver ($1-$100k)

                      0500$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                      Reward Saver

                        Rates based on a savings balance of $10,000. Sorted by total interest rates. Refer to providers' websites for bonus rate conditions and for any applicable fees and charges. Rates correct as of August 20, 2022. View disclaimer.

                        Ben James, Director of Quarterly Economy Wide Surveys at the ABS, said falls in retail turnover were recorded in five of the six retail industries, led by household goods retailing which plunged by 9% over the month.

                        "Household goods retailing, other retailing, department stores, and clothing, footwear and personal accessory retailing, fell after large rises in November," Mr James said.

                        "November sales were underpinned by an easing of restrictions in Victoria, new product releases and Black Friday sales." 

                        Food retailing also suffered in December, falling by 2% across the month as COVID restrictions limited household gatherings in some states and territories.

                        By state, Victoria led the falls with retail turnover plunging 7% after a 22% rise in November.

                        Retail turnover in New South Wales also dropped by 5% as localised COVID restrictions in Sydney impacted retail trade.

                        'Wholesome' gift spike at Christmas

                        December was the month of 'wholesome' gift giving, according to data from eStore Logistics, Australia’s largest ecommerce-focused fulfillment provider.

                        The data shows huge year-on-year growth for online orders of health and beauty products (30%), books, CD's and DVDs (33%), and home renovation items (96%). 

                        There was also a 67% spike in online orders for Christmas food and beverages.

                        Managing Director of eStore Logistics Leigh Williams said Australians are treating themselves after an unprecedented year.

                         “After a really challenging year, it's no wonder that Aussie Christmas shoppers opted to give wholesome gifts to friends and family at Christmas," Ms Williams said.

                        "In fact, the growth in online orders in 2020 for these products shows that we responded to 2020s challenges by making wellbeing our top priority.

                        “In December, no Australian state was in lock down and all physical stores were operating as normal, however shoppers still opted to buy online.

                        "For online orders to still be growing at 27% compared to December 2019 shows us that the habit of online shopping is being cemented in our lives for the long term.”


                        Photo by Ben Garratt on Unsplash

                        Latest Articles

                        author-avatar
                        Emma Duffy is Assistant Editor at Your Mortgage and  Your Investment Property Mag, which are part of the Savings Media Group. In this role, she manages a team of journalists and expert contributors committed to keeping readers informed about the latest home loan and finance news and trends, as well as providing in-depth property guides. She is also a finance journalist at Savings.com.au which she joined shortly after its launch in early 2019. Emma has a Bachelor in Journalism and has been published in several other publications and been featured on radio.

                        Be Savings smart.
                        Subscribe for free money newsletters.

                        By subscribing you agree
                        to the Savings Privacy Policy