South Australians spending more on presents, groceries in CBD this Christmas
Shoppers aren’t tightening the purse strings for Christmas with many simply bearing the brunt of inflation.
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South Australians are expected to spend $86m in the CBD alone, as they increase their Christmas spending more than any other shoppers in the country.
The Australian Retailers Association, in conjunction with Roy Morgan, is anticipating $9bn in sales nationally in the week leading up to December 25, despite it being a “subdued” Christmas overall.
According to Compare the Market, South Australians, on average, will spend $1160 on gifts, food, alcohol, eating out and travel during the silly season, with $686 of the total sum being spent on presents.
The ARA says SA consumers are predicted to spend 2.6 per cent more on their silly season shopping than they did last year, and, on Christmas Eve, thousands of us are expected to rush into Rundle Mall for last-minute purchases.
“City retail shoppers were predicted to spend $86 million in the lead up to Christmas and we anticipate a large proportion of that to be spent on Christmas Eve alone,” Adelaide Economic Development Agency’s Rundle Mall executive manager Andrew White said.
“Many shoppers plan in advance, using Black Friday to kickstart their Christmas shopping and then steadily ticking things off throughout the festive season, but we always see a last minute rush,” Mr White said.
On Saturday, last-minute shoppers in Rundle Mall say they spent more than usual this Christmas.
Cyndi Sedecki, who was shopping with her husband Simon and two children Alina, 7, and Kasper, 1, said they were deliberately trying to shop smarter because they were also buying presents for extended family members.
“It’s very noticeable that prices have grown in the past year,” Ms Sedecki said.
“I try to split the present buying into sections so I’ve already bought presents for the kids during some mid-year sales and now I’m getting a few things for relatives.
“But it’s also keeping the number of presents down – you don’t need to buy that many.”
Sisters Danae and Malena Mavraskis said they were simply bearing the brunt of the extra expense this Christmas.
“The price tags have gotten worse for sure but I think everything is expensive now, not just the Christmas presents,” Malena said.
“We usually have $50 budget for our shopping but now it feels like that’s not enough to get what we need.
“But you have to buy it so you just pull out the extra money if you need.”
The ARA has predicted Australians will have spent $67.4bn – which is one per cent up on last year – for the trading period from November 1 to close of business Sunday, December 24.
It was a re-forecast from an earlier estimate of $67.1bn, on the back of strong Black Friday sales and the recent interest rate reprieve.
With consumers in our state predicted to lift their spending by 2.6 per cent from 2022, shoppers in the ACT will increase theirs by two per cent, followed by WA (up 1.6 per cent), NT (up 1.2 per cent), Victoria (up 1.2 per cent), Tasmania (up 0.9 per cent) NSW (0.7 per cent) and Queensland (up 0.2 per cent).
ARA chief executive officer Paul Zahra said a large portion of the $9bn to be spent in the past week and Sunday would have been used for food purchases.
Food is expected to account for $27bn (up 3.2 per cent from 2022) of the $67.4bn Australians are expected to spend from November 1 until the end of trade Sunday.
Cost-of-living pressures mean Australian consumers are predicted to spend less on household goods (down three per cent) and hospitality (down 1.5 per cent); but they are expected to buy more from department stores (up three per cent).
Mr White said clothing, footwear, cosmetics, books, toys and electronics were popular purchases in Rundle Mall, which had been decorated with inflatable Santas and giant swinging bells to create a “fun and festive experience” for shoppers.
Some retailers in the city and suburbs are already offering Boxing Day discounts on goods.
Mr Zahra also said the bumper Black Friday sales had helped retailers build momentum.
“November trading by all accounts appears to have been strong, despite cost-of-living pressures, as shoppers capitalised on unprecedented deals and sales to tick off their Christmas lists early, and this has helped prop up our Pre-Christmas projections somewhat,” he said.
However, Mr Zahra said the ARA was expecting it to be a “subdued Christmas” overall.
“The slight increase in spending this year is being inflated by unavoidable supply chain price increases, particularly in food, and an overall increase in Australia’s population,” he said. “If you exclude these factors, overall Christmas spending is in decline.
Rundle Mall, Westfield centres, Burnside Village and Harbour Town are all open from 9am to 5pm on Christmas Eve.
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