‘Twas the month before Christmas, and all through the shops,
Eloise Zoppos
Research Fellow, Department of Marketing
Paolo De Leon
Research Consultant, Department of Marketing, Monash Business School
not a carpark to be found, not even one spot.
Christmas retail seems to start earlier and earlier every year, and 2022 is no exception.
Part of this is due to ongoing supply chain issues – some local councils decked out their high streets earlier than usual this year for fear of missing out, and some Target stores were to have stocked Christmas trees as early as August for the same reason.
There’s also Australia Post encouraging us to to ensure deliveries make it on time.
Even the famous Myer Melbourne Christmas windows launched on 6 November – a week earlier than previous years – inching closer and closer to October.
But is the everyday Aussie getting in the Christmas spirit earlier? Have they started their shopping yet? Yes and yes, suggests our new research (and our struggle to get a car park!)
For the third consecutive year, we conducted research to shed light on consumer retail trends this holiday season, and found that Austraslians are embracing their first lockdown-free festive season since 2019.
In fact, by the time this article is published, many Australians would have started their shopping, with 55% starting one or more months in advance (with the remaining 45 per cent starting in the four weeks leading up to Christmas).
Giving the gift of choice
Buying gifts can be stressful, especially when there’s so many people to buy for.
This year, the majority of shoppers will be buying gifts for their immediate family (90%), while a third will be buying for friends (35%) and extended family (30%).
As expected, the average spend is much higher on presents within the immediate family group – Aussies are estimated to spend an impressive $379 on Christmas presents for their immediate family, compared with $190 for extended family, and $133 for friends.
While physical gifts remain the most popular this Christmas, our research suggests shoppers are planning to purchase fewer products in every category this year.
For example, the most popular two categories for gifting this year both trended downwards since last year – clothing, footwear and accessories (47%, down from 58% in 2021), and toys and games products (38%, down from 47% in 2021).
This aligns with our that indicates consumers have been reducing the amount of products they’re purchasing in general.
It’s not surprising, then, that money will prove to be a popular gift this year, with nearly two-thirds (64%) of shoppers planning to give money to adults and children, taking the stress out of having to choose a gift.
Similarly, many shoppers (41%) indicated they’ll be purchasing gift cards and vouchers as part of their Christmas shopping.
Deck the malls with boughs of holly
For shoppers who still prefer to buy a physical gift for their family and friends, physical stories remain the most popular channel for Christmas purchases this year, with four out of five shoppers planning to purchase a product in-store.
Online shopping will still prove popular, though – especially in our post-pandemic world where customers are moving between the offline and online worlds more quickly than ever before – and nearly half of shoppers (47%) plan to make purchases on physical retailer websites, while 37% plan to buy from online-only retailer websites.
Australian shoppers also like variety when it comes to payment methods. More than half (59%) intend to use debit cards for Christmas purchases, followed by credit cards (40%) and cash (31%). One in five shoppers also plan to use “buy now, pay later” options for their purchases.
Sales to keep on giving
And, of course, marking the end of the retail season are the Boxing Day sales.
Our research found that in comparison to other sales events such as Black Friday and Cyber Monday, Boxing Day remains the top sales event.
This year, 37% of shoppers are intending to make a purchase in the Boxing Day sales, up from 30% last year. Slightly more were also planning to purchase from Black Friday and Cyber Monday sales this year.
On the back of months of cost-of-living increases and interest rate rises, it’s no surprise more shoppers are targeting sales events this year compared to 2021.
Christmas may be starting earlier than ever, but these sales keep the Christmas spirit going – especially for retailers – even after the Christmas Day festivities have ended.
