In the heart of central Adelaide, Angela Buccella, proprietor of a pop-up Christmas store, notes a discernible decline in trade this festive season. Characterizing her establishment as a purveyor of non-essential but delightful items such as Christmas trees, plastic Santas, and an array of decorations, Buccella observes a softer sales performance compared to previous years. The economic backdrop, marked by inflation and interest rate hikes, has prompted Australians to exercise fiscal prudence, impacting the demand for such “nice to have” items.
Buccella remarks, “It’s a sign of the times; people are definitely watching their spend. There are fewer customers, and those who are coming in are definitely watching their spend.”
Contrary to this trend, South Australia appears poised to defy the national narrative, projecting a robust festive spending spree. The Australian Retailers Association anticipates South Australians to collectively expend just under $4.3 billion in the month leading up to Christmas, positioning the state as the sole outlier poised to surpass last year’s festive sales.
Rundle Mall, Adelaide’s central shopping precinct, reports encouraging foot traffic, in stark contrast to the national estimate of reduced gift expenditures, averaging $646 this year compared to approximately $700 in the previous year.
While economists predict a substantial $86 million expenditure in the city in the lead-up to Christmas, individual traders are grappling with the discernible shift in consumer behavior. Kate Treloar, managing a CBD bookstore, notes a decline in pre-Christmas trade, with shoppers displaying a reluctance to splurge amid rising essential expenses. Similarly, Alister Haigh, Chief Executive of Haigh’s Chocolate, acknowledges a notable reduction in customer purchases, emphasizing the importance of supporting local businesses in the final days leading up to Christmas.
As the countdown to Christmas Day narrows to just over a week, businesses collectively appeal to shoppers to rally behind local traders, expressing optimism that a last-minute surge will aid those who have experienced a slower-than-usual festive trade. “All traders rely on Christmas sales to get them through because it does go a bit quiet through the January months,” underscores Mr. Haigh, emphasizing the critical role of community support in these final days.
