Retail spending forecast for pre-Christmas sales Australia 2023, by category

During the 2023 November to Christmas trading period, spending on food across Australia was expected to come to around 26 billion Australian dollars. In comparison, spending in department stores during the pre-Christmas sales was forecasted to amount to just over 3.6 billion Australian dollars, with predicted total spending of over 66 billion Australian dollars in 2023.

Christmas gift shopping

Australian consumers started their Christmas shopping early in 2023, with over 45 percent of shoppers expecting to have wrapped up their gift shopping by the end of November, some even anticipating being done as early as October. Immediate family members and friends were the leading intended gift recipients for those purchasing presents during the 2023 holiday season, with the top reasons for buying a gift for someone being to show love and care and to put a smile on someone’s face. Over 50 percent of shoppers intended to buy clothing, footwear, and accessories as gifts during the 2023 holiday season, with around 38 percent planning to purchase gift cards or vouchers.

How inflation stole Christmas

Nonetheless, inflating prices and lower disposable income have put a spanner in the works for many households across Australia during the 2023 Christmas period, with several consumers planning to rein in spending. Many shoppers planned to employ money-stretching and saving strategies, including cutting back on personal expenditures, such as eating out, using loyalty points, and utilizing BNPL services, such as Klarna and After Pay, to afford spending more over the holiday period. Others decided to focus more on purchasing cheaper gifts, secondhand gifts, and fewer gifts, with over 30 percent of parents indicating they were very likely to only buy Christmas presents for their kids.