HUGE crowds at yesterday’s Boxing Day shopping sales do not necessarily represent a sudden return of consumer confidence, with industry experts claiming the Rudd Government’s pre-Christmas stimulus package has disguised the extent of the retail slowdown.

While tens of thousands of bargain hunters poured through the nation’s department stores from early yesterday, Australian National Retailers Association chief executive Margy Osmond said the bigger than expected turnout might have been a falsedawn.

“We’ve seen some very aggressive pre-Christmas sales, so shoppers can expect that retailers will up the ante from Boxing Day onwards to keep the momentum going,” she said.

“While we expect a slight increase on spending, and while the bonus that was part of the Government’s economic stimulus package has done its work, and the emotion of Christmas has kicked in and encouraged people to spend, it is important to understand this is not a conclusive indication of a return to higher consumer confidence.

“I think it is fair to suggest we are going to see some slowing down going into January and February.”

Ms Osmond said that traditionally, the December-January sales were the best time to buy large items such as sofas, television sets and washing machines, but she was concerned that many people would make what they had last another year.

“What we’re seeing is that while people are marginally less concerned about their mortgage than two months ago, they are still very concerned about saving,” she said.

Industry forecasts suggest Australians will spend almost $14.6billion over the Boxing Day and New Year period, compared with $14.1 billion last year.

Thousands of shoppers lined up outside major department stores in Sydney and Melbourne from about 1am onwards yesterday in preparation for the sales. There were big crowds in Brisbane, while in Perth the big retailers opened on December 26 for the first time after years of lobbying for Boxing Day trade.

Paul Wee, 27, was not sure what bargains he was looking for, or even why he — and about 2000 others — had spent the night on thefootpath outside the David Jones Sydney store.

“It seemed to be a good thing to do,” he said. “We are here just for the fun of it.”

Singer Delta Goodrem arrived at the Sydney store just before 6am to ring the traditional opening bell. “I can’t believe how early it is,” she said, before urging everyone to shop their hearts out.

David Jones estimates it will sell one million business shirts, half a million towels and 100,000 pairs of shoes during its nationwide post-Christmas sales.

Tayla Propst, 18, a student from western Sydney, described the atmosphere as “crazy, very crazy”. “It has definitely lived up to expectations. I love it.”

In Melbourne, Myer opened the doors of its Bourke Street store at 5am. Myer general manager of communications Mitch Catlin said later the economic crisis appeared to have had little effect on crowd numbers.

RINGING UP THE SALES

What shoppers are expected to spend between Boxing Day and January 15

State …….. 2008 …….. 2007

Vic ……….. $3.60bn … $3.51bn

NSW …….. $4.54bn … $4.48bn

Qld ……….. $3.03bn … $2.87bn

SA ……….. $1.04bn …. $987m

WA ………. $1.65bn …. $1.55bn

Tas ……….. $335m ….. $307m

NT ………… $137m ….. $130m

ACT ………. $269m ….. $264m

Australia … $14.6bn … $14.1bn

Source: Australian National Retailers Association

Editorial — Page 10

Credit: John Stapleton, Nicolas Perpitch