Australians are budgeting $80 more for Christmas gifts this year and $100 more for food and drink during the festive season, according to the Pureprofile 2024 Christmas Report.
Total gift budgets for 2024 averaged $468 (up from $388 in 2023), with food and drink budgets sitting at $406 (up from $306 in 2023).
Despite higher spending intentions, many Australians are still on the lookout for bargains, with 67% looking to save on Christmas expenses this year. Almost half of Australians (45%) also expect to take advantage of Black Friday and Cyber Monday deals. Other money-saving tactics include buying fewer presents (41%) and cheaper food alternatives (27%).
There’s high positivity towards the festive season in Australia, with 60% feeling emotionally positive as inflationary pressure eases – a marked increase from previous years (54% in 2023, 57% in 2022 and 56% in 2021).
Pureprofile CEO, Martin Filz said, “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.
“Interestingly, despite the prevalence of AI, only 7% of Australians plan to use it for holiday planning this year. It seems that some aspects of Christmas cheer remain untouched by technology, proving that perhaps not everything can be enhanced by ChatGPT.”
Among Australians, practical gifts that may help relieve the household budget were prioritised with gift cards (46% vs 44% in 2023) and money (41% vs 36% in 2023) topping the wish list. Other desired gifts include clothes or shoes (33% vs 28% in 2023), food or drinks (30% vs 27% in 2023) and skincare and cosmetics (28% vs 22% in 2023).
Globally, most people intend to shop between November and early December. Over two-thirds (70%) of Australian shoppers plan to start in November or earlier (up from 67% in 2023), while few (9%) plan to leave it until the middle of December.
Australians are also embracing the in-store experience this year (59%), but a large portion still prefer online shopping (41%). Most Australians are price-conscious this year (80%), ranking it higher than quality (68%) with regard to Christmas purchasing decisions. Factors such as brand reputation (26%) and recommendations or reviews (20%) also had less impact. Shoppers reported that retailers offering a promotion with a percentage off (50%) held significantly more appeal than free shipping (17%) or buy one get one free offers (12%).