Retailers are hoping Australians will splurge a record amount at Boxing Day sales, with warnings for Sydney residents and the lingering financial impact of other lockdowns expected to push more business than ever online.
The National Retail Association (NRA) predicts the nation's online spend will hit $930 million, after highly successful Black Friday sales earlier this year, and a total spend of $649 million on Boxing Day last year.
It also forecasts shoppers will spend a record $2.75 billion across stores nationwide, up from $2.59 billion spent at the shops on the same day last year.
Sales are forecast to be up from last year in all states and territories except Victoria, where spending is expected to be on the same level as 2019.
There have been concerns of "potential spread through the CBD" in Sydney following the emergence of cases outside of the northern beaches area.
On Christmas Day, Premier Gladys Berejiklian encouraged people not to go to the shops for Boxing Day, traditionally one of the biggest retail days of the year.
Economists have predicted the virus flare-ups in NSW could further accelerate a shift towards online spending on household goods, food and alcohol.
Australian Retailers Association (ARA) chief executive Paul Zahra said there had been "record low" numbers in Sydney CBD early on Saturday morning. Foot traffic picked up later in the day, he said.
"But in saying that, the online businesses have gone particularly bananas," he said.
He said the association supported the NSW advice to stay away from the CBD "despite it being really disappointing".
Ms Berejiklian on Saturday thanked retailers for their understanding, acknowledging "the pressure this builds on businesses".
She said there had been reports of some suburban shopping centres being very busy, saying: "If it is too crowded, turn around and go home".
Union calls on shoppers to stay home
The union representing shop workers called it "irresponsible" to be holding the sales during a pandemic, especially in Sydney.
Major retailers say there will be strict COVID-19 safety measures in place and have been instructed to enforce the physical-distancing rules of each state and territory.
But the NSW Secretary of the Shop, Distributive and Allied Employees Association (SDA), Bernie Smith, said profit should not be put ahead of health.
"But this year more than ever we should be staying away from crowded places and instead of rushing to the shops on Boxing Day, think of our retail workers who have served our community and give them a bit of a break as well," Mr Smith said.
"And let's just go to the shops and spend plenty of money over the next two-week period where there will be time to spread out."
Mr Zahra said each retailed "has done their absolute darndest" to provide a safe shopping experience for customers.
"We are asking customers to self-regulate, wear a mask, bring hand sanitiser — we can provide that as well — it is very important customers do the right thing and remain socially distant during these very high-volume days," he said.
"This is the biggest retail event of the year, so we want people to be safe, but we also want them to shop because every dollar spent in a store gives someone a job."
Retailers hope for much-needed financial boost
Many retailers in Australia were forced to close at some point this year due to coronavirus lockdowns and shutdowns across the country, with Victorian stores bearing the brunt of the closures.
Mr Zahra said up to two-thirds of retail profits are made in the Christmas period, making it a crucial time for hard-hit businesses.
"They [the sales] are very important to a retailer's success, in fact they often build up cash reserves just to trade through the rest of the year, so they are really important," Mr Zahra said.
The ARA is forecasting $19.5 billion will be spent in the trading period from Boxing Day through to mid-January.
According to Australian Bureau of Statistics figures released earlier in the week, national retail turnover rose 7 per cent between October and November 2020.
Victoria saw a large rise, up 21 per cent, as retail stores experienced a full month of trade following the easing of coronavirus restrictions in the state.
