The three weeks before Christmas Day have always signalled a last minute gift buying rush.
This year is no different. According to the new Christmas Gift Buying Survey from the Australian Retailers Association (ARA), in collaboration with Roy Morgan Research, nearly 60 per cent of Australians say they will spend the same or more (12%) in spite of cost of living pressures.
The average gift purchase budget is predicted to be $700, a dip of $26 from last year. But the nation’s total spend in the lead-up to Christmas is estimated to be 3 per cent above 2021 figures at $64 billion.
In keeping with long-held habits, alcohol and food top the list of intended Christmas spending, followed by gift cards and toys reveals the survey.
Male respondents indicated a greater inclination to buy alcohol or food. Their female counterparts were more likely to purchase small, inexpensive gifts or novelties, clothing, shoes, books or music.
Since the beginning of Spring, more and more people have resumed their normal eating out and bar hopping habits. The bonanza will continue for the hospitality industry with an estimated $9 billion to be spent in the run-up to Christmas – up 16.3 per cent on 2021.
Over 80 per cent of Australians surveyed say they will purchase Christmas gifts this year – an increase of 2 per cent over last year. Older Millennials and younger Gen Xers aged 35 to 49 will be the biggest spending demographic and are expected to fork out an average spend of $933 – an increase of $111 on the age group’s average last year.
In good news for bricks-and-mortar retailers, the majority of Christmas shopping will take place in-store, reveals the ARA survey. Close to 33 per cent of respondents said they would shop online – down 14 per cent – and only 1 per cent said they would do all their shopping online.
The most populous states will lead the way with NSW consumers forecast to spend $20 billion before December 25th ( +3.1% on 2021). Victoria will fill the second slot with an estimated spend of $16.5 billion ( +0.8%), followed by Queensland at $13.3 billion (+4.6%).
We are likely to see robust spending continue for Aussie retail, says Paul Zahra, CEO of the ARA. “This is encouraging news given the economic circumstances. Most discretionary retailers make up 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 their dwindling cash reserves.”
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