Most Australians (59%) have claimed they will spend the same or more (12%) than last year despite growing inflationary pressures, a new survey has found.
The Christmas Gift Buying Survey by Australian Retailers Association (ARA) in collaboration with Roy Morgan also found the average gift purchase is $700, down slightly ($26) on last year.
ARA holiday sales predictions with Roy Morgan forecast that Australians will spend nearly $64 billion in the lead up to Christmas, up 3% on last year.
Out of the states and territories, South Australia is set to record the biggest growth in sales on last year (up 6.6%), followed by the Northern Territory (up 6.5%). Consumers in NSW are forecast to spend nearly $20 billion in the pre-Christmas sales (up 3.1% on 2021), with Victorians to fork out $16.5 billion (up 0.8%) and Queenslanders $13.3 billion (up 4.6%).
Women were more interested in small inexpensive gifts or novelties, clothing shoes and sleepwear, or books and music, while men were the most likely to purchase food or alcohol.
ARA said sensory indulgence is a key theme for 2022, with alcohol and food topping the list of intended gift purchases for this year, followed by gifts cards and toys.
Around 80% of Australians will purchase Christmas gifts this year, which is up 2% on 2021, with the majority of shopping to remain instore. Around one-third of this will be done online (down 14% point on 2021), and only 1% say they will do all of their shopping online.
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.
Almost a quarter of Australians (21%) have said they will shop earlier this year, with Australians aged between 35 and 49 committed to spending an average of $933 for their gifts (up $111 from 2021), the highest for any age bracket.
Hospitality businesses are also set to reap in the run-up to Christmas, with over $9 billion in trade predicted – up 16.3% on 2021.
ARA CEO Paul Zahra said retailers have a lot to feel confident about this year, despite the economic headwinds.
“We are likely to see the robust spending continue for Aussie retail,” Zahra 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,” Zahra continued. “The news couldn’t come at a better time for the hospitality sector, who have endured more pain than most businesses through the pandemic.”