By Chris Nicholls
BRISBANE: BSR Group and Narta have announced a large leap in post Christmas sales, but the results were tempered by moderate growth in the run up to Christmas.
The Queensland-based retail franchise group recorded 15.95 per cent year-on-year growth over the December 25 to 31 period, but could only manage a 6.45 per cent rise for the period from December 4 to 24. However, with the strong post-Christmas result, the group posted an eight per cent increase on 2006 for the month.
BSR Group managing director Ian Brown said the strength of the post-Christmas figures followed recent industry efforts to boost spending after the traditional Christmas shopping period.
“That seems to be the industry trend now. Our competitors are spending an enormous amount of money on post-Christmas sales and what that does is that has a flow on effect to everyone,” he said.
“All that additional activity in our category drives people to the stores. Everyone spends an enormous amount of money on that particular period.”
He said another positive came from the company’s general profit margin, which increased 0.5 per cent for December, despite large discounts across the industry.
Buying group Narta’s managing director, Kay Spencer, confirmed the trend, with post Christmas sales for members, which include JB Hi-Fi, Bing Lee, Clive Peeters, David Jones and Rick Hart, exceeding those prior.
“After Christmas sales were good, but to Christmas they were average,” Spencer said.
“The states that have had the hot weather have done well – Queensland has had a shocker, while for South Australia and Victoria the weather has pulled them out of the fire.
“The stand out products were flat panel, mp3, and navigation products although there has been some price erosion in the category.”