Research from the Australian Retailers Association and Roy Morgan forecasts that gift spending will reach $12 billion this year, an increase of $200 million on a year-on-year comparison.
Overall retail spending between 13 November and 24 December is expected to reach $72.4 billion, a 4 per cent increase on a year-on-year comparison.
Commenting on these trends, Australian Retailers Association CEO Chris Rodwell said shoppers are planning earlier.
“Retailers are seeing encouraging signs that Australians are planning ahead and spreading out their Christmas budgets,” he said.
“Early shopping activity is helping to build momentum for the most important season for the sector, where many discretionary retailers make up to two-thirds of their annual profits.”
Nearly one in three shoppers is beginning to purchase holiday gifts earlier this year, fuelled by major promotions. Unsurprisingly, Australians aged 35 to 49 are projected to spend slightly more than those aged 18 to 34.
Rodwell encouraged Australians to support trusted retailers throughout the season.
“Christmas is when retail comes alive. We’re encouraging Australians to back the retailers who are part of their everyday lives,” he said.
“Every purchase supports jobs, investment and community connection – the things that make Australian retail such an important part of the national story.”
Despite the increasing availability of sales promotions, the report suggested that most local consumers are returning to stores for value, service and reassurance, with only 22 per cent increasing online purchases compared with last year.
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