Will the grinch spoil sales this festive season?
Australians are looking to tighten the purse strings even further as the cost of living crisis continues, with 65 per cent looking to spend less this Christmas and gift budgets have decreased for the second year in a row.
Pureprofile’s 2023 Christmas Report reveals that another tight Christmas is on the books as rising prices continue to eat into Australians’ Christmas budget and fuel financial pressure concerns.
“This marks our fourth consecutive Christmas season characterised by tighter budgets and reduced spending,” says CEO, Martin Filz.
“While this is not surprising, it is interesting to note where Australians are making the most cuts―discretionary spending on travel and gifts are often the first to be reduced in challenging times. However, we’re also now looking to the likes of essentials like food and drink to recoup some celebration costs.”
After a surge in early Christmas shopping in 2022, only 67 per cent will shop for presents in November or earlier. This is down from 72 per cent in 2022 and 69 per cent in 2021.
Similar to last year, Aussies are more intentional about making their money count, spending on those that matter most by buying fewer gifts (42 per cent) or choosing only to buy gifts for their children (22 er cent). Gift budgets have also decreased for the second year in a row, from $430 in 2021, $424 in 2022 to $388 in 2023.
“We’re seeing a thriftier Australia that’s placing an emphasis on thoughtful and intentional spending; where the holiday spirit is retained, but celebrations take on a simpler, more meaningful tone.”
Gift preferences among Aussies, however, have remained relatively stable compared to previous years, with gift cards and money being the most sought-after gifts to give (47 and 24 per cent respectively) and receive (44 and 36 per cent respectively). Other desired gifts this year are clothes and shoes (28 per cent) and food or drinks (27 per cent).
“As needs and priorities continue to evolve this festive season and in the future, it’s imperative that businesses, policymakers and government agencies remain deeply attuned to consumer sentiments and trends.
“The data from our Christmas report underscores the dynamic nature of consumer behaviour and stresses the importance of agility and adaptability. By staying in tune with consumers and leveraging insights to shape strategies, we can better support during these changing times.”