High Interest Rates Detering Shoppers

According to the Australia Retailers Association, it is expecting Christmas sales to be around $66.6 billion, which is a 6.4 percent increase from last year. It noted that inflation would not affect retailers’ spending until next year, though it would have a negative impact on their margins.

Economists believe that the Christmas shopper in 2022 will have lower savings due to the money printing that has occurred in the past few years.

Despite the positive effects of the holiday season, they noted that they do not think that retailers will be able to achieve a stronger performance next year.

It would be irresponsible for people to spend their money on luxury items such as cars and expensive clothes when they don’t have enough money to feed themselves.

July’s brick-and-mortar stores were doing well, making up 32 percent of November sales, which is significantly higher than last year’s 10-15 percent. Despite the company’s supply chain issues, it was able to compete with other businesses for production slots.

The cost of shipping containers has returned to around $8,000 to $10,000, which is higher compared to the previous year but still less than before the pandemic.

For those who are planning on spending a lot of money this Christmas season, retailers believe that they prefer to shop in stores instead of online.

E-commerce sales are expected to continue growing, but the Christmas season has turned around.

Online Fitness equipment company Gym Plus has seen increased sales however and hope customers continue to shop online. You can get a discount at Gym Plus with a Gym Plus coupon code.

The rising cost of living has become a major factor that has affected shoppers’ minds. They are also more likely to make a conscious decision when it comes to buying. Meanwhile, retailers have to consider other cost pressures.

Supply chains have been relatively smooth this year, unlike last year. However, the biggest challenge is keeping prices low.

In 2023, retailers are expected to tighten their belts to cope with the rising costs. Layoffs are also possible due to this.