Good news in store for retail this Christmas – New Search

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It’s starting to look a lot like last Christmas – with most Australians (59%) saying they will spend the same or more (12%) than last year despite mounting inflationary pressures, according to a new survey. The survey on the purchase of Christmas gifts[i] by the Australian Retailers Association in conjunction with Roy Morgan also found that the average gift purchase is $700, down slightly ($26) from last year.

The ARA holiday sales forecast with Roy Morgan forecasts Australians will spend nearly $64bn before Christmas, up 3% from last year.

Sensory indulgence is a key theme for 2022, with alcohol and food topping the list of planned gift shopping for this year, followed by gift cards and toys. Men were most likely to buy alcohol or food, while women were more interested in small gifts or inexpensive novelties, clothes, shoes and sleepwear, or books and novelties. the music. Hospitality businesses are also expected to thrive ahead of Christmas, with more than $9 billion in trade forecast, up 16.3% from 2021.

Other key findings from ARA-Roy Morgan research include:

  • About 80% of Australians will buy Christmas gifts this year, up 2% from 2021.
  • Australians between the ages of 35 and 49 will spend the most, spending an average of $933 on gifts. Spending for this age group increased by $111 over last year.
  • Most Australians say they will buy at the same time as last year, but almost a quarter (21%) say they will buy sooner.
  • The majority of purchases will remain in-store – of which around a third will be made online (down 14% from 2021). Only 1% say they make 100% of their purchases online.
  • A slim majority of 52% (up 15% from a year ago) say their online shopping habits have “stayed the same” as a year ago, while just under a fifth, 17% (up 12% of points) say they do so now. Fewer online purchases than last year.
  • The top ten gift categories this year are: Alcohol/Food, Gift Cards, Toys, Small Gifts/Inexpensive Novelties, Clothes/Shoes/Sleepwear, Books/Music, Homecoming/Kitchenware/ furniture, technical items and useful/practical items.

ARA CEO Paul Zahra said retailers had plenty of reason to feel confident this year, despite economic headwinds.

“We are likely to see continued robust spending for Australian retail,” he said. “This is encouraging news given the economic circumstances – most discretionary retailers are making up to two-thirds of their profits during this critical trading period. Many smaller businesses remain in recovery mode and have seen their operating costs rise. significantly over the past two years. This planned increase in spending will help to bolster their dwindling cash reserves.

“Australians are really planning to eat, drink and be merry this Christmas. It’s no surprise that we’ve seen a shift towards food and entertainment with the holiday season over the past two years in Australia. ‘shadow of closures,” Mr. Zahra said. “The news couldn’t come at a better time for the hospitality sector which has endured more pain than most businesses during the pandemic.”

Among the states and territories, South Australia is expected to see the strongest sales growth over last year (+6.6%), followed by the Northern Territory (+6.5%). NSW consumers are expected to spend almost $20 billion on pre-Christmas sales (up 3.1% from 2021), with Victorians shelling out $16.5 billion (up 0.8% ) and the Queenslanders $13.3 billion (up 4.6%).

Black Friday sales should provide retailers with strong results heading into Christmas, with ARA-Roy Morgan forecasting sales to hit a record $6.2 billion over the four-day Black Friday weekend/ Cyber ​​Monday (November 25-28).

[i] This ARA-Roy Morgan Snap SMS survey was conducted among an Australia-wide representative sample of 2,317 Australians aged 18 and over from Thursday 20 October to Monday 24 October 2022, including 1,717 who plan to buy presents for Christmas.

/Public release. This material from the original organization/authors may be ad hoc in nature, edited for clarity, style and length. The views and opinions expressed are those of the author or authors.View Full here.

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