This year’s holiday season will usher in the value-driven, bargain-savvy consumer, with Australians tipped to spend less but shop more purposefully, according to a new survey by the Australian Retailers Association (ARA), in collaboration with Roy Morgan.
The survey found that one-in-three (30%) shoppers will cut their Christmas gifting budgets in 2023, while 61% will look to maintain last year’s spending and only 9% intend to spend more.
As a result, Australians are forecast to spend $67.1 billion in the lead up to Christmas this year, up just 0.6% on 2022.The average gifting spend is tipped to be $646 per person, down from $700 in 2022.
Toys and games will be the most sought-after gifts (20%) followed by gift cards (18%), clothing, shoes and sleepwear (16%).
Most of the shopping will remain in-store with just over one-third (36%) being done online, as one in five (21%) reveal they are doing ‘less purchases online’ than last year.
ARA CEO, Paul Zahra said Christmas shoppers this year will be more considered and deliberate in their spending.
“Many Australians are under significant financial pressure and their Christmas gifting behaviour will reflect this,” he said.
“A big part of their buying mentality will be geared towards bang for their buck. Shoppers will actively seek out good deals but they’re still looking for gifts that reflect their personal values. For retailers, sales and promotions will be more important than ever especially on the marquee Black Friday and Cyber Monday weekend.
“With increased competition and reduced spending across discretionary categories, retailers will be mindful of shopper’s shifting spending focus and will be motivated to entice shoppers however they can.”
Despite the soft Christmas spending forecast, Black Friday sales are set to provide strong results in the lead up to Christmas with ARA and Roy Morgan forecasting record sales to $6.36 billion over the four-day weekend (24 November to 27 November) up 3% on last year.