As the 2024 Christmas season approaches, Australia’s retail sector is navigating economic challenges that are reshaping holiday spending behaviour. While rising inflation and interest rates have prompted shoppers to be more strategic with their purchases, there is a cautiously optimistic outlook. A significant 76% of consumers plan to spend the same or more this holiday season, with the average Christmas budget reaching $660.
The Shift Toward Bargain Hunting
Bargain hunting will be a dominant theme for 2024, with 70% of Australians citing sales promotions and discounts as the primary factor in their holiday shopping decisions. For brands, this means that well-timed promotions can be the key to winning over budget-conscious consumers. The emphasis on value highlights the need for retailers to focus on offering compelling deals both online and in-store.
November Takes the Lead as the New Peak Shopping Period
One of the most notable shifts this year is in shopping timelines. For the first time in nine years, late November has overtaken December as the peak period for holiday shopping. A total of 63% of consumers plan to complete their Christmas purchases in November, with 37% specifically targeting Black Friday and Cyber Monday sales events. This trend signifies that retailers need to be prepared early to capture demand during these critical sales periods.
The Rise of Omnichannel Shopping
The 2024 holiday season is expected to be the most omnichannel yet. An impressive 89% of consumers plan to blend both physical and digital channels in their shopping journey, a 6% increase from last year. Online marketplaces like Amazon, eBay, and The Iconic remain popular choices, while department stores continue to play a significant role in gift buying.
Despite a small decline in physical store shopping for Christmas gifts, and the dominance of omnichannel shopping, physical stores remain a key component of Australians’ holiday shopping plans. Many consumers continue to favour the in-store experience for certain purchases, making it essential for retailers to create a seamless connection between their physical and digital channels to meet evolving expectations.
Top Gifts for 2024: A Focus on Fashion and Books
Clothing, shoes, and books are the top gift choices for this holiday season. This year sees a rise in popularity for these categories, especially among younger shoppers aged 18-34. Gift cards remain popular but have been overtaken by apparel and books as the most sought-after presents.
Key Takeaways for Brands and Retailers
- 76% of Australians will spend the same or more on Christmas gifts this year.
- 70% of shoppers are driven by sales promotions and discounts.
- November is now the peak shopping period, with 37% focusing on late November.
- 89% of consumers will use both online and in-store channels.
- Popular gift categories include clothing, shoes, and books.
The insights from this year’s report provide a clear roadmap for Australian brands to navigate the evolving retail landscape. By understanding and responding to these emerging consumer trends, businesses can better position themselves for success during the critical 2024 Christmas season.
For a deeper dive into the full findings, download the 2024 Australian Christmas Shopping Intentions: The Evolving Christmas Shopper Report.
