This holiday season – from 1 November to 24 December 2024, Australian total retail sales are expected to increase 4.4% year-over-year (YoY), according to Mastercard SpendingPulse. This compares to holiday sales in 2023 which rose 4% YoY.
Sharing a meal with loved ones, either at home or in a restaurant is likely to drive growth in the restaurant sector of 6.3% YoY and in groceries of 5% YoY as consumers spend on food – both at home and away from home.
Value seeking Australian consumers are likely to splurge on apparel during the ongoing sales periods, with apparel sales growing by 3% YoY compared to 2.4% YoY during the holiday period in 2023.
Replacement demand for electronics, along with a ‘good deal’, may lure consumers with expected growth in electronic sales of 1.2% YoY, compared to negative growth in 2023. Jewellery sales should also see a turnaround, growing at 2.7% YoY compared to negative growth last year, attributed to higher disposable incomes and improving consumer confidence.
For the budget conscious Australian consumer, a great deal or bargain is likely to seal the purchase. Online channels may drive growth especially in sectors such as apparel and dining, though exclusive in-store deals might also be sought after.