Australians increase Christmas budgets, focus on savings

A recent study by Pureprofile reveals an increase in Australians' spending budgets for the Christmas festive season.

The report details that Australians plan to allocate an additional AUD $80 for gifts, bringing the average up to AUD $468 from AUD $388 in 2023. Similarly, budgets for food and drink are expected to rise by AUD $100, now averaging AUD $406 compared to AUD $306 the previous year. Despite this increased expenditure, shoppers remain vigilant for deals, with 67% intending to economise on expenses.

Notably, 45% of Australians plan to capitalise on Black Friday and Cyber Monday sales. Other strategies to stretch their budget include buying fewer gifts (41%) and selecting more affordable food options (27%). There is also an upswing in positive sentiment towards the festive period, with 60% of respondents feeling emotionally positive, an increase from previous years.

Martin Filz, CEO of Pureprofile, commented, "This is the first time in five years that we've seen a loosening of the Australian purse strings and a noticeable uplift in holiday spirit. This shift is remarkable and suggests we may be emerging from the long shadow of cost-of-living concerns."

"However, a cautious sentiment persists, with shoppers actively seeking savings and bargains. Retailers should take note that Australians are inclined to shop in-store, making it essential to offer more substantial in-store discounts to drive foot traffic."

The report also sheds light on gifting preferences. Australians are inclined towards practical presents, with gift cards (46%) and money (41%) leading the wish list, followed by clothes or shoes (33%), food or drinks (30%), and skincare and cosmetics (28%).

Looking at the timeline for festive preparations, most Australians (70%) plan to commence shopping in November or earlier. A notable portion embraces in-store shopping (59%), though online purchasing remains significant at 41%. The role of AI in holiday planning appears minimal, with only 7% planning to use it for Christmas plans.

Price remains a critical consideration for Australians, with 80% prioritising it over quality (68%) in their Christmas shopping decisions. Promotions entailing a percentage discount (50%) are more attractive to shoppers than free shipping (17%) or buy-one-get-one-free deals (12%).

The workplace Christmas party scene may see cutbacks, as one in five working Australians anticipate scaled-down celebrations due to rising costs. About half expect festivities similar to last year, whereas a quarter anticipate no celebration at all.

Regarding holiday leave, 73% of Australians look forward to time off. However, some (9%) dislike being compelled to take their annual leave during this period, partly due to limited and costly travel options.

The ideal Christmas setting, according to global responses, involves enjoying a meal with family at home. In Australia and New Zealand, 55% identify with this preference, although some opt for alternative settings, such as a cabin in the snow (12%), a beach day (11%), or dining at a fine restaurant (11%).

Travel intentions for Christmas 2024 are also on the rise, with 41% of Australians planning trips, though only a small fraction (8%) intend to travel abroad.