Australians are forecast to spend $11.8 billion on presents in 2024, up by $1.6 billion (or 15 per cent) on last year’s figures.
This is according to new data from Roy Morgan, commissioned by the Australian Retailers Association (ARA).
The data also confirms that a majority of shoppers (53 per cent) have already purchased gits as of mid-October.
More than 16 million Australians will be buying Christmas gifts in total this year, up 1 per cent on 2023. On average, these shoppers are forecast to spend $707 each, which is up $61 on the average spend recorded a year ago.
ARA chief industry affairs officer Fleur Brown said this year’s trend of buying presents early is driven by a focus on value for money.
“With Australians continuing to battle a cost-of-living crisis, we know more people are planning ahead this year and carefully researching to find gifts at the best available prices,” Brown said.
“Overall peak season spending projections are at $69.7 billion, up 2.7 per cent on last year. This boost in spending is very welcome news - particularly for discretionary retailers who make up to two-thirds of their annual profits during peak season.
“It’s continuing to be an incredibly challenging year for retail, with slowed consumer spending coupled with rising costs of doing business.”
The biggest market of shoppers this year are Australians aged 35-49, with individuals in this category set to spend an average of $965 – with a total spend of $4.4 billion (up by $700 million on last year).
Most shoppers (63 per cent) say they will be spending the same as they did last year, while 29 per cent say they will be spending less.
Food retail is predicted to be the most lucrative category this Christmas, with shoppers projected to spend $28 billion on festive food this year, an increase of 4.2 per cent on a year ago.
Brown said competition for the consumer dollar is at an all-time high, with retailers pulling out all stops to ensure shoppers have access to the best range of products and services.
It is also expected that more Australians than ever will participate in Black Friday and Cyber Monday sales this year, with many driven by a quest to purchase gifts at sales prices.
Shoppers are set to spend a record $6.7 billion during the four days, an increase of 5.5 per cent compared to the same time last year.
“Retailers have been investing in their business months in advance - from installing festive-store fit-outs and adding new product ranges, to improving their online offerings and customer service options,” Brown said.
“This Christmas will be more important than ever for retail, and these figures are encouraging in this intensely challenging year.”