It's the most wonderful time of year for retailers who are pulling out all the stops for Aussies with just four more sleeps to Christmas.
Shoppers are expected to spend $69.8 billion during the lead up to Christmas, up 2.7% on last year's figures, updated data from Roy Morgan reveals.
Celebrating with loved ones is a big focus for many Australians after a challenging year and consumers are ready to fork out $28 billion on plum pudding and turkey, marking an increase of 4.2% on a year ago, while there's an expected increase of 1.6% in the discretionary (non-food) category.
This festive period, $5.7 billion will be spent on clothing (up 3.3%), $10.8 billion on other retailing (up 4.7%) - which includes categories such as recreational goods, books, cosmetics - and $10.6 billion on hospitality (up 4.7%).
Australians are also showing they want to spoil their loved ones, with the gift spend forecast to be $11.8 billion this year, up $1.6 billion on last year's figures.
In total, 16.7 million Australians will buy Christmas gifts in 2024, up 1% on 2023. On average, those shoppers are forecast to spend $707 each, up $61 on the average recorded a year ago.
ARA Chief Industry Affairs Officer Fleur Brown says it's encouraging to see Australians eager to embrace the festive season despite cost-of-living challenges.
"This peak season trading period is critical for retail, with many discretionary retailers making up to two thirds of their annual profit during peak season.
"Retailers have gone all out to ensure they have the best product lines and gift solutions, customer service offerings and enhanced online platforms to make shopping during this peak season more seamless than ever.
"We've seen Australians plan their festive periods earlier, with many ticking off their Christmas lists and commencing shopping in October."
Of the biggest states, shoppers in NSW are ready to record the biggest growth in sales on last year, up 3.4%. TAS is forecasted to grow at 5.9%, QLD will see growth of 3%, VIC a 2.3% increase, and WA is preparing for marginal growth of 0.2%.
NSW shoppers are gearing up to spend $21.9 billion, while VIC shoppers are projected to be spending $17.8 billion.
"We're hopeful this will be a positive end to the year for the retail sector after a challenging 12 months," said Ms Brown.
