Business News
Credit-averse Australians scrimp on Christmas shopping
Dec 20, 2011, 3:50 GMT
Sydney - Australians spooked by the prospect of a global recession are shopping with cash rather than putting Christmas purchases on their credit cards, retailers said Tuesday.
A survey of 1,000 householders by the Australian National Retailers Association found that cash was king and shoppers were loath to rack up more borrowings.
'We've seen the trend of people choosing to pay down debt and save in the past few years and there remains little interest from consumers in adding weight to their credit cards,' association chief Margy Osmond said in a statement.
Ten years ago the average Australian saved nothing at all. Now, as fears grow of infection from the debt crisis in Europe, households are putting aside 11 per cent of their discretionary spending.
'With Europe in their mind's eye, most Aussies will be sticking with cash to ensure they keep with a budget when they are out shopping,' Osmond said.
Poor trading conditions cropped 44 per cent off shares in clothing company Billabong International Ltd on Monday. Leading retailers were also hit, with department store chain Myer off 6.2 per cent and rival David Jones Ltd down 9 per cent.
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