Christmas Spend Coming Early, Consumer Research Shows

Each fortnight Power Retail surveys over 1,000 Aussie shoppers to track changes in consumer behaviour. While consumer confidence has been dipping in line with inflationary pressures and the general economic climate, the latest Trajectory Report shows we might be seeing a shift here. In July, a higher percentage of online shoppers said they planned to decrease spend (21%) than increase spend (20%). However, just a fortnight later in August, we can see a boost to those that plan to increase their online spend in the coming month. Trajectory #52 found that 23% planned to increase their online spend, while the number who planned to decrease spend online has remained static (21%).

Source: Power Retail Switched On Trajectory Report #52

So, why is this the case? For those planning to decrease spend, the main reason for the majority (62%) is to save for essentials. But when it comes to increasing online spend 47% said convenience was the driving factor, while in second position, 40% said they were planning to increase spend in the coming weeks to shop for Christmas gifts.

This means that September shoppers are already planning for Christmas. When we asked this same question just a fortnight later for the upcoming Trajectory #53, we can see that this figure is continuing to rise, with 47% saying they plan to increase spend in the coming month to purchase Christmas gifts. As a retailer, does your Christmas spend account for this early purchase behaviour?

Source: Power Retail Switched On Trajectory Report #52

In fact, Power Retail recently took an even closer look at shifting consumer behaviour and Christmas spend which we presented at the recent Connect event in Melbourne. The data showed that in both 2021 and 2022, 28% said they did / plan to do their Christmas shopping in November. However, the proportion who plan to shop in October is up from 15% in 2021 to 19% in 2022. Interesting to note, is that one in five customers have likely already done their Christmas shopping in August or earlier.

When we broke this question down by gender, there is a clear difference between when Women and Men plan to shop for Christmas this year. While 70% of the respondents looking to shop in August, September and October were Women, 56-57% of respondents planning to shop in December were Men.

Similarly, when broken down by age, both the youngest (18-24) and oldest (65+) age brackets look to leave their Christmas shopping to the last minute, with close to 60% of these respondents shopping no earlier than November.

On the flip side, the 35-44 and 45-54 age groups are more likely to get in early, with 23% of 45-54 having already done their Christmas shopping in August or earlier.

Power Retail Connect is a critical industry forum in turbulent times and connects with key retail leaders. If you have any questions about the Connect event, contact Brittany Folino at [email protected]. For all sponsorship enquiries, contact Rachel Gowland at [email protected].

You can also download Trajectory #52, FREE for Power Retail Switched On Members.

PLUS join our fortnightly Market Update, in which we present findings from the most recently published Trajectory Reports. FREE to join (for both Switched On members and non-members), and just 15 minutes! Our next Market Update will take place on Wednesday, 21 September at 1 pm, and we’ll be taking a deep dive into Retailer Apps. Register here.

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