Australians’ Christmas spending is estimated to be $64 million this year according to ARA holiday sales prediction, up by 3% from their last year spending.
Despite rising inflationary pressures, 59% of Australians claim that they are willing to spend around the same or more than last year. Latter claims on increased spending are supported by 12% of Aussies.
“We are likely to see the robust spending continue for Aussie retail,” said ARA CEO Paul Zahra.
“This is encouraging news given the economic circumstances – most discretionary retailers make up to two thirds of their profit during this critical trading period.”
“Many small businesses remain in recovery mode and have seen massive increases to their cost of doing business over the past two years. This forecast spending boost will help boost their dwindling cash reserves.”
Among intended gift purchases, alcohol and food tops the list, followed by gift cards and toys.
Men were the most likely to purchase alcohol or food, whilst women were more interested in small inexpensive gifts or novelties, clothing shoes and sleepwear or books and music.
Hospitality businesses are also set to flourish in the run up to Christmas, with over $9 billion in trade predicted – up 16.3% on 2021.
“Aussies truly plan to eat, drink and be merry this Christmas. It’s no surprise we are seeing a shift towards food and entertaining with the holiday period over the past two years spent in the shadow of lockdowns,” said Mr Zahra.
“The news couldn’t come at a better time for the hospitality sector who have endured more pain than most businesses through the pandemic.”
Other findings include the fact that the most spending comes from Aussies in the age bracket of 35 – 49 years, committing an average of $933 to their gifts.
The Black Friday sales are set to provide retailers with strong results in the lead up to Christmas with ARA-Roy Morgan forecasting sales to reach a record $6.2 billion over the four-day Black Friday/Cyber Monday weekend.
