Australian shoppers are tipped shake off their COVID-19 blues and spend big this Christmas.
The forecast splurge will mark the start of a much needed retail recovery for the pandemic-ravaged sector, the National Retail Association says.
"Retail has experienced a roller-coaster year, with businesses across Australia forced to navigate lockdown restrictions due to COVID-19," chief executive Dominique Lamb said on Friday.
"Many businesses desperately need a Christmas sales boost to keep themselves afloat as we head into 2021."
The NRA says that's likely to happen with retail sales for the festive season set to surpass $50 billion, a five per cent increase on 2019.
"With people unable to travel overseas, the continuation of government assistance measures and a thirst from shoppers to get out of the house following lockdown periods, we're confident that consumer spending will be solid," Ms Lamb said.
The COVID crisis has forced shoppers to adapt, with online Christmas sales forecast to break the $5 billion barrier for the first time this season.
PayPal says almost half of all Christmas purchases will be made virtually - a 90 per cent increase on 2019 sales.
"This year many more Australians will shift their shopping behaviour and purchase gifts online, rather than in-store - with safety and security driving this trend." PayPal consumer shopping researcher Danielle Grant said
A poll by the online payment giant found 35 per cent of Australians are stressed over the prospect of Christmas shopping due to COVID-19.
A quarter of the 1000 people surveyed also said they don't feel comfortable about shopping in-store, which is likely to be the main driver behind the increase in online shopping, Ms Grant said.
Upcoming November sales events, such as Black Friday and Cyber Monday, are also expected to see many people get stuck into their Christmas shopping earlier.
But traditionalists need not worry, the Boxing Day sales are set to remain for those shoppers who love the stampede to the shopping centres.
