BRICKS and mortar retailers are unlikely to enjoy much Christmas cheer this year, a new report has warned.
Business consultancy IbisWorld says the allimportant Christmas shopping season will again be dominated by heavy discounting, bargain hunters and fierce competition from online retailers who continue to win market share.
“Festive shopping is expected to remain subdued,” IbisWorld industry analyst Kim Do said.
“Trading conditions are forecast to remain challenging across the range of bricks-and-mortar retailing and service industries commonly found in Australian shopping centres.”
The Christmas period can make or break a retailer, with about 11 per cent of all spending occurring in December, in the lead-up to Christmas Day.
Ms Do said retail revenue was forecast to rise by a slim 1.9 per cent over the year to this December.
Australian Bureau of Statistics data last week showed retailers suffered their biggest two-month sales fall in seven years during July and August.
Retail turnover declined 0.6 per cent in August.
Ms Do said foot traffic at Australian shopping centres was 4.3 per cent lower in August compared with the same period a year earlier.
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