More than half of Australians look to spend more on Christmas gifts, survey finds
Marketers take note: more than half (59%) of Australians said they are looking to spend the same or more than last year for Christmas gift purchases despite inflationary pressure, according to research by Australian Retailers Association (ARA) and Roy Morgan.
The Christmas Gift Buying Survey finds the average gift purchase to be $700 this year, down $26 from last year’s estimate.
Most Australians will hit the store (literally) for their purchases, with around one-third of shopping expected to be done online (down 14% from 2021). Only 1% said they will do 100% of their shopping online.
“Sensory indulgence” is said to be a common theme, as alcohol and food top the list of intended gift purchases for this year, followed by vouchers gifts and cards, toys, jigsaws and board games.
Australians aged between 35 and 49 years will spend the most – committing an average of $933 to their gifts. The spending for this age group is up $111 over last year.
Other findings include:
- Around 80% of Australians will purchase Christmas gifts this year – up 2% from 2021.
- Most Aussies say they will shop at the same time as last year – but almost one quarter (21%) say they will shop earlier.
- A slim majority of 52% (up 15% points from a year ago) say their online shopping habits have ‘stayed the same’ as last year while just under a fifth, 17% (up 12% points) say they are now doing ‘Less purchases online’ than last year.
The ANZ-Roy Morgan Consumer Confidence Index fell 5 points in November to 80.7, its lowest level since June. CPI inflation expectations rose from 5.0% to 5.3%, breaking a downward trend.
However, ARA CEO Paul Zahra said retailers have a reason to remain positive about this year, despite economic turbulence.
“We are likely to see the robust spending continue for Aussie retail,” he said. “This is encouraging news given the economic circumstances – most discretionary retailers make up to two-thirds of their profit during this critical trading period.”
“Many small businesses remain in recovery mode and have seen massive increases to their cost of doing business over the past two years. This forecast spending boost will help boost their dwindling cash reserves.
“Aussies truly plan to eat, drink and be merry this Christmas. It’s no surprise we are seeing a shift towards food and entertaining with the holiday period over the past two years spent in the shadow of lockdowns.”
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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