Businesses expecting shoppers to spend less usual these holidays

Retailers are concerned the cost of living crisis is affecting the pre-Christmas retail rush.

Transcript

00:00It's no doubt cost of living pressures have been increasing and the festive season can

00:05be an especially difficult time for households already on tight budgets.

00:10Retailers across the country have been reporting a decline in consumer spending in the immediate

00:15lead up to Christmas compared to previous years.

00:18Of course, there'll still be many shoppers doing a mad dash in the coming days, but it

00:22appears as though many Australians were strategic this year by taking advantage of some of the

00:26sales earlier in the year.

00:28The Retailers Association estimates that a record $6.8 billion was spent during the Black

00:34Friday and Cyber Monday sales this year, which is an increase of 5.5% compared to the same

00:40time last year.

00:41Yesterday, the federal budget was updated, revealing an increase in government spending.

00:46The Treasury expects that recovery in household spending will now be much slower as a result

00:51of that, and an interest rate cut is now less likely to happen as soon as originally anticipated.

00:57I spoke to some shoppers in Rundle Mall about what their Christmas spending has looked like

01:01this year.

01:04Did you take advantage of things like Black Friday, Cyber Monday?

01:08Unfortunately, no.

01:09That's why I'm ill-prepared for the Christmas coming up, so no.

01:13So you've got one week to go.

01:15Is there going to be a bit of a mad dash out to the shops?

01:18Yes, yes.

01:19I think especially like the day or two before Christmas, I think that's where I'll smash

01:22it all out.

01:23But yeah, very, very ill-prepared, yeah.

01:27Those who missed out on the big sales last month shouldn't have to wait too long until

01:31the prices are slashed again.

01:33The business sector expects retailers to offer sales well into the new year to encourage

01:37more consumer spending.