Consumers cashed up and ready to spend for Xmas: Accenture report

Consumers are primed to spend up for the Christmas holidays, while even those who ­usually prefer to shop online say they are likely to be tempted to return to stores.

Julia Cauchi with her daughters Remy, 6, and Sloan, 2, at Myer in Melbourne. Pent-up savings and demand from consumers is primed to supercharge spending on gifts this year. Picture: Mark Stewart

Consumers are primed to spend up for the Christmas holidays, while even those who ­usually prefer to shop online say they are likely to be tempted to return to stores as they relish post-­lockdown ­freedoms.

According to the Accenture 2021 Consumer Shopping report released on Tuesday, pent-up savings and demand from consumers is primed to supercharge spending on gifts this year.

The Accenture report predicts the average consumer will spend $246 more on Christmas gifts this year than the average of $819 spent in 2020.

Older Millennials will likely spend the most, at an average of $989, while single adults living alone intend to spend the least, an average of $550 each.

The proportion of those spending more rises from 28 per cent to 37 per cent in the under 40s, and falls to just 13 per cent for Baby Boomers, according to Accenture.

And the rush to secure ­Christmas presents could come earlier than usual, as disrupted supply chains and delays in ­shipping caused by Covid-19 prompts shoppers to get out early.

The Accenture report found 42 per cent of shoppers are ­concerned about shortages and will be heading out early, while 40 per cent of Australians have already begun their shopping.

“Consumers are ready to splash out on themselves and family but also giving back to the community,” said Michelle ­Grujin, Accenture managing ­director for Australia and New Zealand retail.

Gift cards remain popular with 66 per cent of consumers planning to spend on them, ­followed closely by food (63 per cent), toys and games (61 per cent), clothing and footwear (60 per cent) and alcoholic beverages (56 per cent).

The biggest challenge could be tempting shoppers back into stores as Covid-19 fears linger, but Accenture believes consumers will want to return to ‘touch and feel’ retail again. Picture: Getty Images

“My predictions in terms of categories is that some clearly benefited, enjoyed incredible growth (in lockdowns) like home improvement, and you will see that subside and level out, and food because we were quite captive and I think we will see that level set,” Ms Grujin said.

“Health and beauty will remain because people are a lot more conscious of their wellbeing.

“It would be nice to see ­occasion shopping and apparel come back with a bang … when we are able to plan events and parties, we will see a shift and a remarkable shift.”

The biggest challenge could be tempting shoppers back into stores as Covid-19 fears linger, but Accenture believes consumers will want to return to “touch and feel” retail again.

“No doubt there has been this enormous shift to online, and we see this hockey-stick effect as we all come out of lockdown and want to get out to the physical stores to touch and feel the theatre of retail,” the report says.

Despite the pandemic induced digital shift, physical channels will be a popular choice this year with 56 per cent of consumers intending to do most of their holiday shopping instore.

Sustainability and ethically sourced gifts will play an important role in choosing gifts, and is reflected in the fact 70 per cent of shoppers told Accenture they will be buying more locally sourced products and from local retailers with just over half buying items in refillable or recyclable packaging. This will include thinking of the environment when placing the gift under the Christmas tree as 38 per cent of consumers said they will ditch wrapping paper this year for environmental reasons.

Originally published as Consumers cashed up and ready to spend for Xmas: Accenture report