Back To The Shops, With Bells On
Sydney Morning Herald
Tuesday December 27, 1994
Major retail chains will launch end-of-year sales today as they look to consolidate pre-Christmas spending which is expected to exceed $1.5 billion in NSW alone.
The Retail Traders Association predicted that sales would beat the 1993-94 pre-Christmas sales by about $200 million and linked the result to the rising economy.
The association's executive director, Mr Mark Paterson, expected the strong spending trend to spill into the post-Christmas sales before easing back around mid-January.
The Minister for Consumer Affairs, Ms Machin, warned consumers yesterday to beware of traders misrepresenting the value or quality of sales goods.
"Retailers offering huge discounts must be able to show that items were sold at higher prices for a reasonable period before the reduction," Ms Machin said.
Traders found guilty of misleading advertising faced a maximum fine of$100,000, she said.
A senior researcher and retail analyst at G. D. Walker and Associates, Ms Susi Rea, said this year's Christmas retailing reiterated two clear spending patterns.
She said shoppers were now spreading their spending across the year so that the Christmas shopping spree began as early as late October.
The other clear trend was that "recession-bitten" consumers were now better informed and were shopping more conservatively in an attempt to secure value.
Despite buyer reticence, Ms Rea said, companies which reacted effectively to market demand could expect
continued sales success as the economy strengthened.
She said a clear trend in retailing was the impact of the baby boomer generation, which had now reached the point where it was "beautifying the home".
As a result, home decoration products were now in big demand.
Credit card managers at Australian banks were quick to dampen down suggestions that overspending on credit cards was a perennial Christmas problem.
Few problems arose, they said, because of applicant vetting procedures, which limited the risk exposure, and quick action taken when credit breaches occurred.
Major retailers have employed several thousand casual staff to prepare for the end-of-year sales.
This year, buyers will be able to secure discounts of up to 50 per cent on goods - with linen, fashion and household goods expected to sell well.
Mayhem in stores in end-of-year sales in 1992 stopped retailers offering the blockbuster discounts which whipped up consumers into an aggressive buying frenzy.
David Jones expects 350,000 shoppers to flow through its two city stores this week and estimates that up to 500 people could queue for today's opening
All major retailers said post-Christmas spending was dominated by people who had deferred buying presents, those exchanging vouchers or cash for presents and those wanting to exchange goods.
An estimated 4,000 bargain hunters jammed Darling Harbour's Hall Five yesterday for the first of Sydney's sales: a music and book sale.
At one stage, concerned security guards prepared to close the doors as a new customer every second threatened to draw the event to a standstill.
"Shoppers are buying smarter this year," said its organiser, Mr John Whale. "It's Boxing Day, but 90 per cent of the people here are still shopping for Christmas presents for people they haven't visited yet."
Other major sales to begin today include Grace Bros, which opens its city store doors at 7.30 am, David Jones, at 8 am, and K mart holiday resort stores at 7 am.
© 1994 Sydney Morning Herald
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