Australian shoppers are expected to spend $69.8 billion during the lead up to Christmas, with $5.7 billion of that pool going towards fashion purchases.
This is according to updated data from Roy Morgan, which shows that the overall spending figure is a lift of 2.7 per cent on the same time last year, while clothing spending is up 3.3 per cent.
The $69.8 billion figure is also a slight lift on original data shared in early November 2024, which was then $69.7 billion - a lift of $100 million.
Celebrating with loved ones is a big focus for many Australians after a challenging year and consumers are ready to fork out $28 billion on plum pudding and turkey, marking an increase of 4.2 per cent on a year ago, while there’s an expected increase of 1.6 per cent in the discretionary (non-food) category.
Alongside the uplift in fashion spending, $10.8 billion will go towards other retailing (up 4.7 per cent) – which includes categories such as recreational goods, books, cosmetics – while $10.6 billion will go towards hospitality (up 4.7 per cent).
Australians are also showing they want to spoil their loved ones, with the gift spend forecast to be $11.8 billion this year, up $1.6 billion on last year’s figures.
In total, 16.7 million Australians will buy Christmas gifts in 2024, up 1 per cent on 2023. On average, those shoppers are forecast to spend $707 each, up $61 on the average recorded a year ago.
Australian Retailers Association chief industry affairs officer Fleur Brown said it’s encouraging to see Australians eager to embrace the festive season despite cost-of-living challenges.
“This peak season trading period is critical for retail, with many discretionary retailers making up to two thirds of their annual profit during peak season,” Brown said.
“Retailers have gone all out to ensure they have the best product lines and gift solutions, customer service offerings and enhanced online platforms to make shopping during this peak season more seamless than ever.
“We’ve seen Australians plan their festive periods earlier, with many ticking off their Christmas lists and commencing shopping in October.”
Of the biggest states, shoppers in New South Wales are ready to record the biggest growth in sales on last year, up 3.4 per cent. Tasmania is forecasted to grow at 5.9 per cent, Queensland will see growth of 3 per cet, Victoria a 2.3 per cent increase, and WA is preparing for marginal growth of 0.2 per cent.
NSW shoppers are gearing up to spend $21.9 billion, while VIC shoppers are projected to be spending $17.8 billion.
“We’re hopeful this will be a positive end to the year for the retail sector after a challenging 12 months,” Brown said.