Retailers 'hurt' by Christmas spending shortfall
Retailers are bracing for a difficult first half of the year after Christmas spending figures did not meet expectations.
An index that measures cash and credit transactions has found that while spending was the highest ever recorded for December at $22 billion, the rate of growth is the lowest in seven years.
The Australian Retailers Association says it was looking for a 3 per cent increase in sales but the figures show a growth rate of only 1.4 per cent.
So even though Christmas spending reached a new record, it wasn't high enough so they are complaining?
The projections for the growth rate were probably based on the growth rate of the Australian economy which is sitting around the 3 per cent mark. I wonder if they took into account the fact that commonly purchased items like milk, bread and petrol have gone up more than 3 per cent in the last 12 months. Like myself, most people have a budget to adhere to and there isn't an endless supply of cash. If more money is being spent on the staples then of course there will be less money for Christmas presents.
» 'Conspiracy Theorist Craig' enters the blog
Maybe this is just a way for the Australian Retailers Association to put some pressure on the Reserve Bank to keep interest rates where they are. As soon as interest rates go up, the number of people with large mortgages will lose a good chunk of the disposable income that is spent.
Retailers 'hurt' by Christmas spending shortfall - ABC News Online