- Online shoe sales growing 9.5% YoY in Australia.
- Aussies to spend A$11bn on gifts this Christmas.
- Credit card purchases each month totals A$24.9 billion.
Australians are poised to kickstart their Christmas spending online and chances are they will be ripping out their credit cards to buy the latest kicks as the online shoe sales sector enjoys an average of 9.5% YoY growth.
While Australian Bureau of Statistics (ABS) data released today (4 November) shows that the country?s retail sales volumes fell a record 4.4% in the September quarter on the back of protracted lockdowns, the festive season could be a real gift for retailers this year.
And it seems the country has a foot fetish. The market size of the online shoe sales industry has grown 9.5% a year on average in the five years to June 2021. Measured by revenue, the sector this year is worth more than A$707.9 million, IBISWorld reports.
With Netflix?s ?Squid Game? being the biggest series launch in its history, shoe brand Vans has enjoyed a mind-boggling 7,800% surge in sales, as avid viewers flock to buy the white slip-on shoes featured in the popular South Korean drama.
Accent Group Limited (ASX:AX1), which owns the Australia-New Zealand distribution rights to footwear brands like The Athlete's Foot, Skechers, and Vans could be busy with online festive season orders.
A big turnaround from March 2020, in which the Accent Group temporarily closed its network of more than 470 stores as COVID-19 decimated retail markets.
As the national spend of credit card purchases each month totals almost A$24.9 billion, a large portion of shoe sales could be paid on credit cards with many people still avoiding brick and mortar stores despite most states lifting restrictions.
According to Finder.com.au, there were 13,205,238 credit cards in Australia as of August 2021. The average credit purchase is A$106.93.
The ABS data shows that clothing, footwear and personal accessory retailing spend was down 25% during the quarter, with food services, and department store spend also dropping, however the Australian Retailers Association forecasts that more than A$11 billion could go through the tills on Christmas gifts with some 48% of those purchases likely to be made online.
With a catalyst like ?Squid Game?, Accent Group may become a challenger to leaders Nike and Adidas for market share in Australia as kids and adults alike hope to unwrap a pair of Vans this Christmas.