A bumper Boxing Day could be on the cards for retailers. We take a closer look
The post Forget Christmas! Could these ASX retail shares be set for a Boxing Day bonanza? appeared first on The Motley Fool Australia. –
It’s often held that the lead-up to Christmas is the best part of an ASX retail share’s calendar. Indeed, most of us usually spend a few hours over December (or perhaps November for the ultra-organised) scouring shops and online stores for various gifts and presents. But these days, the period following Christmas can be just as lucrative for ASX retail shares. Thank the rise of the Boxing Day sales. Plenty of post-Christmas cash, some time off work… who wouldn’t want to head to the shops and snare a few bargains?
But how much of a cash bonanza can Aussie retail companies look forward to this year?
ASX retail shares could be set for a bumper end to the year
According to the report, CBA is expecting Australians to unleash a $4 billion tidal wave of cash over this year’s Boxing Day sales period. CBA’s research found that 69% of those surveyed are planning to bag a bargain or two at this year’s sales.
Some 40% of those surveyed also were in a position to predict how much they would be willing to drop into retailers’ pockets. The average spend is expected to be $557, a very healthy 14% rise from the $457 spent last year.
CBA’s card data also found that customers are looking likely to spend 22% more this December across their debit and credit cards than the average of all the other months of 2021.
That will no doubt be music to the ears of the ASX’s largest retail shares such as JB Hi-Fi Limited (ASX: JBH), Premier Investments Limited (ASX: PMV), Super Retail Group Ltd (ASX: SUL), and Kogan.com Ltd (ASX: KGN).
Kate Crous, executive general manager at CBA Everyday Banking, said of the report’s findings:
As the nation bounces back, Australians are embracing shopping and are excited to hit the sales. This is welcome news for retailers, who are keen to see consumers return after a tough few months, and is also great for consumers hoping to get good value from their shopping.
I need your clothes, your boots, and your… dishwasher
Clothing retailers look set to be the biggest beneficiaries of this potential wave of spending. Fair enough. With the lockdowns that most Aussies have endured this year, a new wardrobe might be in order for many. CBA found that 57% of those surveyed were intending on splashing out on some new threads or kicks.
But technology, home electricals, white goods, and homeware and furniture are also tipped to be big winners. So perhaps ASX retail shares like Nick Scali Limited (ASX: NCK), Adairs Ltd (ASX: ADH), or Temple & Webster Group Ltd (ASX: TPW) also have some cash coming their way.
Wherever this holiday period takes us, there will no doubt be more than a few ASX retail shares eyeing a potentially very merry Christmas right now, if CBA’s report is to be believed.
The post Forget Christmas! Could these ASX retail shares be set for a Boxing Day bonanza? appeared first on The Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen owns ADAIRS FPO and Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO, Kogan.com ltd, Super Retail Group Limited, and Temple & Webster Group Ltd. The Motley Fool Australia owns and has recommended ADAIRS FPO, Kogan.com ltd, and Super Retail Group Limited. The Motley Fool Australia has recommended Premier Investments Limited and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.