Australians are embracing the festive spirit early in 2024, with a majority of shoppers (53%) having already purchased gifts as of mid-October.
New Roy Morgan data, commissioned by the Australian Retailers Association (ARA), reveals shoppers are forecast to spend $11.8 billion on presents in 2024, up $1.6 billion on last year's figures.
16.7 million Australians will be buying Christmas gifts in total this year, up 1% on 2023.
On average, those shoppers are forecast to spend $707 each, up $61 on the average spend recorded a year ago.
ARA Chief Industry Affairs Officer Fleur Brown says this year's trend of buying presents early is driven by a focus on value for money.
"With Australians continuing to battle a cost-of-living crisis, we know more people are planning ahead this year and carefully researching to find gifts at the best available prices.
"Overall peak season spending projections are at $69.7 billion, up 2.7% on last year. This boost in spending is very welcome news – particularly for discretionary retailers who make up to two thirds of their annual profits during peak season.
"It's continuing to be an incredibly challenging year for retail, with slowed consumer spending coupled with rising costs of doing business," she said.
The biggest market of shoppers this year are Australians aged 35-49, with individuals in this category set to spend an average of $965 - a total spend of $4.4 billion (up $700 million on last year).
Most shoppers (63%) say they will be spending the same as they did last year, while 29% say they will be spending less.
And shoppers will be forking out on food, with Australians ready to dish up second helpings of Christmas pudding and turkey as they spend a projected $28 billion on festive food this year, an increase of 4.2% on a year ago.
Ms Brown says competition for the consumer dollar is at an all-time high, with retailers pulling out all stops to ensure shoppers have access to the best range of products and services.
More Australians than ever are expected to participate in Black Friday and Cyber Monday sales this year, with many driven by a quest to purchase gifts at sales prices. Shoppers are set to spend a record $6.7 billion during the four days, an increase of 5.5% compared to the same time last year.
"Retailers have been investing in their business' months in advance – from installing festive-store fit outs and adding new product ranges, to improving their online offerings and customer service options.
"This Christmas will be more important than ever for retail, and these figures are encouraging in this intensely challenging year," she said.
