Turnbull-led Government gives the go-ahead to consumers to open their purse strings.
The Good Guys is celebrating one of its best first halves in history and expects momentum to continue into the second half, according to chief merchandise officer, Geoff Reader.
“Christmas 2015 was very strong for The Good Guys with robust sales leading up to and including the month of December. The festive season’s trade was greatly supported by the move to bring our Knockout Boxing Day sale forward to begin on December 21, providing customers with the opportunity to take advantage of Knockout deals before Christmas and the chaos of Boxing Day,” Reader explained.
“Christmas 2015 was all about healthy living, nutrition and baking with some of the hottest products including personal blenders, such as the NutriBullet, food processors, mixers and air fryers; as well as action cameras and activity trackers, including the GoPro and Fitbit.
“We also saw an increase in purchases of hot household items including coffee machines, as well as Smart TVs, tablets, laptops, vacuums and many other household essentials topping our customers ‘must haves’ for Christmas 2015,” he said.
Meanwhile, the Winning Group experienced a strong Christmas period achieving double-digit growth year-on-year for the month of December, according to Winning Group CEO, John Winning.
“The Winning Group experienced growth across all categories in particular small appliances such as coffee machines, BBQs, vacuum cleaners as well as digital cameras, ovens, cooktops, dryers, taps and sinks.
“This demonstrates that small appliances are great gifts at Christmas and that Australians are equipping themselves with appliances that allow them to entertain and take advantage of the Christmas holiday period and summer months,” he said.
“We anticipate that our current growth will continue throughout 2016 for both our stores and online business,” Winning added.
WA Narta member, Dorsett Retail managing director, David Dorsett-Lynn (pictured below) said sales “have been the best he has seen since the GFC.”
“All of our stores traded up on last year and several were more than 20% up,” he said.
“The whitegoods category was very strong, which is no surprise as we are always on the shopping list for whitegoods. The suppliers that work with us in premium in this category have done the best without a doubt and we have seen significant growth in premium area over the last 12 months.
“Having said this, we traded up in every category we participate in, so an overall great result,” he added.
Dorsett-Lynn is also expecting 2016 to be a strong year as consumer confidence bounces back with the change in government.
“Since the change in PM, we have seen a continued improvement in our sales so from our perspective Malcolm Turnbull has been a winner,” he said.
2nds World managing director, Peter Hammerman has posted a record December with the help of a successful Boxing Day trade, with over 40 customers lining up outside the Auburn store before opening.
“It was the first time we opened on Boxing Day and we are very happy we did so… if the law does not change back we would not hesitate in opening again this year.
“Products across the board were selling very well, from fridges and dishwashers to TVs and coffee machines. However, due to the unusually cooler weather, air-conditioning sales have been soft in comparison to previous years. Our online business also performed pleasingly well.
“We had good conversations with customers in store and positive feedback about upcoming renovations for 2016 so we are hoping for another great year,” he said.
Small appliances, a stand-out performer
Leading Appliances Taree in NSW store owner, Peter Bolte echoed the positive results from Dorsett-Lynn, saying that December was the biggest month they have had in three years.
“Our sales and margin are up and turnover increased so we are quietly confident for a good 2016,” he said.
“Small appliances sold well in early December with the personal blending category going ‘bananas’, particularly the Nutri Ninja blender. Major appliances were popular throughout the Christmas period, including dishwashers and fridges. With an aged population, our demographic of customers often visit us to replace appliances that are used infrequently,” Bolte said.
Betta Home Living Lismore in NSW store manager, Michael Haddin said the turnover for the small appliance category was up and TVs sold better in comparison to previous years.
“Refrigeration also sold well, although overall, the cooking category was quiet. Juicers were a top highlight, and surprisingly sandwich makers sold well, while coffee and floorcare were also great performers,” he said.
The Oasis Betta Electrical in Northern Territory relocated its store and reopened on Saturday January 2 and store owner, Joe Fernandes was “pleasantly surprised” to see some familiar faces along with new customers.
“Our opening weekend was surprisingly better than any other trade on a weekend, although we are still in the process of putting all our stock on the shop floor. Over the Christmas period, whitegoods and audio visual products were selling well and with the warm weather, air-conditioning sales have been good. However, there is a general downturn in the local economy.
Boxing Day breaks records
The Australian Retailers Association (ARA) has predicted that around $2.3 billion went through registers across the country as part of the annual Boxing Day sales event.
ARA executive director, Russell Zimmerman said, “This year’s Boxing Day crowds certainly did not disappoint, and if anything, were larger than previous years.
“Judging from the number of people in stores and our prediction of $2.3 billion in purchases nationally, I think we will be looking at a record Boxing Day in 2015 in terms of sales. The ARA and Roy Morgan Research expect that Australian consumers will make retail purchases to the tune of $16.8 billion from December 26 to January 15,” he said.
“Boxing Day is traditionally known as the biggest sale day of the year, and while physical stores are the focus for many, online stores will also have seen an uptick in consumer activity for both Boxing Day and right throughout the post-Christmas sales period,” Zimmerman added.
Harvey Norman Toowoomba franchisee Cara Sherman told The Chronicle that Boxing Day exceeded expectations.
“Customers wait for the full year for the Boxing Day sale, so they come in and get genuine bargains,” she said.
She said it was great to see consumers in the store that were getting savings on items such as televisions, washing machines, air conditioners and furniture.
“It’s really exciting times for customers and for us as well,” Sherman said.
Harvey Norman’s New Zealand business with its Timaru computer department manager Chad Nicholas telling local media that he had rarely seen it busier than it was on Boxing Day in his six years with the retailer.
“We were absolutely flat out. We had huge foot traffic as we always do on Boxing Day, probably 1000 through the door, but people were buying a lot more than they normally do,” he said.
The most popular items flying out the door were smartphones, computers, fitness watches and cameras, according to Nicholas.