Fashion shopping has trended down in popularity from last year to 47% from 58% while still remaining the most popular category. This is according to Monash Business School’s Australian Consumer and Retail Studies (ACRS) research unit report on Christmas retail trends.
The second most-popular category is toys and games, which is down to 38% this year from 47% in 2021.
Meanwhile, the report found 55% of Australians now start their shopping one or more months in advance, with the remaining 45% starting in the four weeks leading up to Christmas.
90% of shoppers will be buying gifts for family, 35% for friends and 30% for extended family.
Australian shoppers estimate to spend $379 on Christmas presents for immediate family, compared to $190 for extended family and $133 for friends.
Four out of five shoppers plan to purchase a product in-store and 47% plan to make purchases on physical retailer websites, compared to 37% from online-only retailers
And 64% of shoppers plan to give money to adults and children while 41% of shoppers indicated they will be purchasing gift cards and vouchers as part of their Christmas shopping.
According to the ACRS, the early start to Christmas shopping is buoyed in part from retailers stocking earlier than usual to avoid selling out, reportedly due to ongoing production delays. It said that select Target stores were known to have stocked festive decorations as early as August, and Myer’s Christmas windows started on November 6, a week earlier than previous years.
Although sentiment for buying gifts this year is strong, research suggests that shoppers are planning to purchase fewer products in every category this year. This aligns with the recent Spotlight on Sustainability research indicating Australian consumers are reducing overall products purchased.
Regarding payment, 59% of Australian shoppers intend to use debit cards for Christmas purchases, followed by credit cards at 40%, and cash payments at 31%. Buy Now, Pay Later schemes are going to be used by one in five Australian shoppers.
The ACRS also note that Boxing Day sales are still returning favourable results. The report finds that in comparison to other sales events such as Black Friday and Cyber Monday, it remains the top sales event with 37% of shoppers planning to take advantage of them this year.
This is higher than the report found last year, with only 30% of shoppers taking part in Boxing Day sales in 2021.
“On the back of months of cost-of-living increases and interest rate rises, it’s no surprise that more shoppers are going to shop at sales events this year compared to 2021,” report lead author Dr Eloise Zoppos said.
Zoopos is also the principal research consultant and research fellow in the ACRS research unit, in Monash Business School's Department of Marketing.
“Christmas may be starting earlier than ever, but these sales keep the Christmas spirit going.”