Deloitte has released the 13th edition of it’s annual Retail Holiday Report, before holiday shopping commences. The report assesses retailer sentiment toward the holiday trading period, identifies key sector trends into 2025 and has surveyed 1,000 consumers on their spending intentions and shopping expectations going into the holiday season.
With Australia’s cost-of-living crisis, there is an evident shift in consumer behaviour, as many are looking to cut their average holiday spending by almost 20 per cent.
The key consumer findings are as follows:
- 76 per cent are cutting back on spending overall, but 67 per cent are still looking to make small splurges.
- 48 per cent expect to buy fewer goods and services.
- 95 per cent are seeking the best deals as their first priority.
- 32 per cent would walk away without some sort of discount.
The changes in consumer intention and action has meant that retailers will have to work to entice consumers and increase their spending. According to Deloitte Retail, Wholesale and Distribution partner, Damien Cook, this could include retailers lowering prices, fixating on affordable and value-driven products and creating greater in-store experiences.
“Many consumers are still looking to splurge here and there, but they’re also telling us they expect to buy fewer products and services,” said Cook.
Retailers are anticipating price sensitivity from consumers, with 40 per cent believing that consumers won’t pay full price for goods and services. Additionally, only 51 per cent expect sales growth this year, given that this figure is steadily decreasing.
Deloitte Consumer Products & Retail Sector Leader Elise Sharpley says that in 2025, “the road ahead for Australia’s retail industry may be challenging, and household budgets will remain stretched for now.”
“Businesses should focus on what they do best in providing exceptional customer experiences, great after-sale service, and integrated digital and physical offerings to entice consumers to start spending again,” said Sharpley.
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