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Newcastle Herald
Newcastle Herald
Business
Michael Parris

Hunter shoppers trade cost-of-living worries for Christmas retail therapy

Shoppers lined up at the Kmart checkout at Westfield Kotara on Saturday morning.

Shoppers are shrugging off the interest-rate blues in the Hunter, turning out in droves for some pre-Christmas retail therapy.

Fast-moving checkout queues snaked for about 40 metres at Kmart at Westfield Kotara on Saturday and spaces were at a premium in the shopping centre's parking garages.

The increasingly popular Black Friday sales also attracted a bumper turnout the previous weekend.

The Australian Retailers Association published research last month which predicted Australians would spend $66.8 billion in the November and December Christmas period, up 0.1 per cent on last year.

The ARA made the prediction just before the Reserve Bank of Australia raised interest rates another 0.25 points in early November, the first rise in five months.

Inflation stood at 4.9 per cent in the year to October, and many market analysts expect the RBA to leave rates on hold when it meets again on Tuesday.

High inflation and rising interest rates contributed to a 0.2 per cent dip in spending in October, according to seasonally adjusted figures released last week by the Australian Bureau of Statistics.

ABS head of retail statistics Ben Dorber said turnover was down in all retail categories except food retailing.

"It looks like consumers hit the pause button on some discretionary spending in October, likely waiting to take advantage of discounts during Black Friday sales events in November," he said.

"This is a pattern we have seen develop in recent years as Black Friday sales grow in popularity."

Clothing, footwear and personal accessory retailing recorded the largest fall, 1 per cent, of the non-food industries in October.

The slight fall in spending in October came despite retailers reporting strong consumer interest in Halloween and the annual "Click Frenzy" sales event.

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