Retailers are expected to reap $1.7 billion in spending this year, up 14.5% ($200 million) on last year’s spending, according to research conducted by Roy Morgan and Australian Retailers Association (ARA).
A majority of the spend will go on hot cross buns, easter eggs, and other special food for Easter.
ARA and Roy Morgan said Easter remains a key event on the retail calendar, with its research indicating that 16.3 million (75%) Australians plan to spend on food (up 1.8 million on a year ago).
The research also found that 7.9 million (37%) of Australians plan to celebrate Easter with alcohol this year.
Across the states, NSW is predicated to spend the most on Easter food and chocolates, at almost $515 million, with an average spend of $108 per person.
Victoria is tipped to spend $455 million, at an average of $97 per head.
People in South Australia ($140 each) and Tasmania ($112 each) have the highest average forecast spend on Easter foods and chocolates.
ARA CEO Paul Zahra said whilst price increases will contribute to the higher spend, retail therapy remains a “sweet spot” for Australians in an economically challenging year.
“For many Australians, Easter is the last break before winter sets in, and a respite from an intense start to the year,” Zahra said. “Whilst shoppers are already beginning to tighten their purse strings, these special occasions are a welcome time of indulgence.”
Zahra said that while inflation would bolster Easter food spending this year, natural spending growth was still evident.
“We’re seeing an increase of more than 14% on Easter food spending compared to last year, which does outstrip inflationary gains.
“An additional 1.8 million people are planning to stock up on hot cross buns, easter eggs and other Easter-centric foods. Aussies simply want to treat themselves during a tough period,” he said.
The almost 8 million Australians who plan to celebrate Easter with a drink will spend $275 million on alcohol over the Easter break or an average of almost $35 each.
People aged 50-64 have the highest planned spend at $47 each – totaling around $100 million for this age group.
The ARA-Roy Morgan Snap SMS survey was conducted between March 10 to March 15 this year.