Retailers across the ACT are hoping Canberrans spend big at Boxing Day sales to counter the worst retail growth prediction in Australia thanks to low consumer confidence.
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The Australian National Retailers Association (ANRA) expect the ACT retail sector to grow by just 1.2 per cent during post-Christmas period, which the lowest growth forecast in Australia and a decline on last year's 4 per cent prediction
Association executive director Russell Zimmerman said the low growth rate was a "fairly good figure" considering the retail association predicted -0.4 per cent negative growth a month ago.
"There is a certain amount of uncertainty around jobs in Canberra at the moment and that doesn't instil consumer confidence so we see a decline in retail spending," he said.
"What we're seeing, and not just in Canberra but in other areas of Australia, is a forecast decline in clothing and footwear sales and that's a particular challenge."
According to the retailers association research, in collaboration with Roy Morgan, Canberrans are expected to spend $47,717,228 on Boxing Day, significantly less than a predicted $660 million spend in Victoria.
Canberra Business Chamber chief executive Chris Faulks said the low growth forecast for the retail sector was not a surprise and reflected the reality of job insecurity in the ACT.
"The continuing uncertainty of job losses in the public sector is impacting on consumer confidence, which in turn impacts retail figures," she said.
"It is likely the retail growth in the ACT will be lower than in the rest of Australia as Canberra is most often counter-cyclical.
"We are obviously encouraging people to spend money over the Christmas period as it's good for the economy and keeps these retailers in business."
But Mr Zimmerman said Canberra retailers had also reported challenges with unpredictable weather over the summer period, making it difficult to appropriately stock their stores.
"If you're trying to sell lightweight dresses with shoe string straps and you're getting unpredictable and wet weather, people don't rush out and buy the products," he said.
"It's sad to say, but the same thing happens with footwear too"
Ms Faulks said the gloomy outlook for retailers in the ACT was not applicable to all areas of the territory economy, and retailers would have additional opportunities in January.
"There are signs in other areas of the economy, from the property sector to other parts of industry, that things are going quite well while other parts of business are a struggle.
"We have a unique and very unusual January coming up in Canberra with major sporting events that will offer our retail, hospitality, and accommodation sectors an opportunity to start the year quite well."
With consumer confidence low in the lead up to Christmas, many ACT retailers have begun to embrace online shopping to buffer their in-store sales.
Mr Zimmerman said Canberra retailers should be making every effort to make their products available online with 45 per cent of ACT customers shopping online, according to an annual retailers association survey
Nationally almost one in five consumers do their Christmas shopping online and generate about 15 per cent of total sales.
"All retailers should focus on online sales," Mr Zimmerman said.
"There is always an opportunity to get online locally, nationally and worldwide."
Nationally, the retail sector is expected to grow by 3.6 per cent between December 26 and January 15 with Australians expected to spend $2.1 billion dollars on Boxing Day.
Retailers association chief executive Anna McPhee said retail turnover had continued to grow steadily on a national level since September despite declining consumer confidence.
"A recent series of solid outcomes is pushing spending growth towards the long-term average growth rate of 6 per cent – this is a positive sign for the economy," she said.
