Christmas shoppers buck online trend
Most Australians are still buying Christmas presents from bricks-and-mortar shopping centres despite the much-discussed trend to online commerce and local launch of Amazon, a new survey shows.
The vast majority (86%) of shoppers said they would buy most of their gifts from shopping centres this year, compared with 12% who would buy online and 1% from markets, a survey by retail landlord Stockland found.
The group highlighted in-store drawcards such as visiting Santa and the ability to do a comparative shop as reasons for the mall visits, adding that Christmas was a busy time for fresh-food retailers.
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The figures are upbeat news for a retail industry facing what Citi analysts last week described as a likely “subdued” Christmas amid weak wages growth and the lack of a “killer gift”. The global retail sector has been in focus after mall giant Westfield and its founder Sir Frank Lowy backed a near $33 billion takeover offer from European landlord Unibail-Rodamco.
Despite a lacklustre launch, the Australian arm of Amazon is expected to put pressure on retailers’ margins over time, particularly if and when it launches its Prime subscription service that offers free delivery.
Locally, Citi research found retail foot traffic this Christmas had fallen 1% and sales were 2 to 4 percentage points slower than a year earlier.
Shoppers are still frequenting shopping centres in droves this Christmas.
Stockland chief executive of commercial property John Schroder says on the most recent data available, foot traffic has risen 4% in the group’s malls in November compared with the previous year, and nearly 3% on a like-for-like basis.
“The research seems to say that customers still prefer to go and experience Christmas shopping,” Schroder tells The Australian.
“I think customers buy online when they’re sure about the product, sure about the brand and sure about the price.”
He warns of the risks of delivery issues with online shopping ahead of the Christmas deadline and adds that lining up to see Santa is a key mall attraction: “You can’t do that on the computer.”
For stylist Kash O’Hara, the magic of Christmas can’t be captured buying goods on a laptop.
“I love Christmas and seeing how excited the kids get at the David Jones window and seeing Santa. You just can’t get the same experience online,” O’Hara tells The Australian.
The survey found 15% of shoppers planned to spend more than $1000 on gifts this Christmas, 31% would spend between $500 and $1000 while 54% planned to stay under $500.
This article originally appeared on www.theaustralian.com.au/property.
