NSW shoppers hunting for bargains but will still spend $800 a person this Christmas
More than $4bn is expected to be spent on Christmas gifts in NSW this year but shoppers are being careful about how they spend their cash.
NSW
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NSW residents are the most generous in the country, spending an average of $800 per person on Christmas gifts this year — but they are not handing over their hard-earned cash without a fight.
Customers are increasingly haggling over prices, doing their research to get the best bargain and waiting for sales frenzies like Black Friday to drop before they shop, as the cost of living crisis bites.
All up, Australians are expected to spend $69.8bn during the lead-up to Christmas – up 2.7 per cent on last year’s figures, according to data from Roy Morgan.
They are splurging on sitdowns and celebrations, with $28bn to be spent on food this festive period and $10.6bn on hospitality.
Plus they are spoiling their loved ones, with the gift spend forecast to be $11.8bn this year, up $1.6bn on last year’s figures.
In NSW, just over $4bn will be spent on gifts — or $800 per person — which compares to $3.1bn in Victoria ($711 per person) and $1.9bn in Queensland ($625).
It is welcome news for retailers after a tough year, said Australian Retailers Association chief industry affairs officer Fleur Brown, although they are competing even harder for every dollar, with savvy shoppers doing their research to get the best deals.
“The rise in spending this year is great news for retailers, with a lot riding on Christmas sales for many this year,” Ms Brown said.
“There’s a definite tendency by Australians to celebrate when they get the opportunity and splurge on their loved ones in spite of, or even in defiance of, the cost-of-living crisis.
“However the tough economic climate means they are becoming more discerning; they’re looking for value and are doing a lot more research before purchasing, and comparing prices to get the best deals.”
Businesses are reporting new tactics, too. In the latest Business Sydney quarterly business conditions survey, 39 per cent of Sydney businesses said price negotiation with customers and suppliers was increasing.
As well, 34 per cent of retailers said customers were increasingly buying lower-cost substitutes.
“People are looking to save money as the cost-of-living crisis forces them to look closely at their purchases,” Business Sydney executive director Paul Nicolaou said.
“They’re haggling for cheaper prices which is something that happens in some overseas countries but doesn’t normally happen in Australia.
“But it’s now in our shopping habits, and means businesses are having to drop their prices.”
Longtime Sydney business operators Peter Morris and Paula Opfer said price points had never been more important as retailers battled to stay afloat after the Covid pandemic.
“After a horrific period in May, June, July, retailers were scared, wondering if the Christmas rush was ever going to come, but it finally gained momentum,” Mr Morris, of Belrose wholesaler Axis Toys, said.
“But spending habits have changed. We have noticed there’s more demand for cheaper toys —where once people would spend $50 to $60 on a present they’re now spending $20 or $30.”
Shoppers were out in big numbers at Pitt St Mall on Friday, looking for last-minute bargains.
Among them was Sydney mum Alison McLean, who said she had done most of her Christmas shopping online, so she didn’t get distracted by impulse buys.
“We made a list upfront this year – one for each child and family members, too. It’s been more about ‘what do we need’ versus ‘what do we want?’,” she said.
“There’s definitely been a lot more thought going into what we’re buying and where we’re buying it from, while trying to make use of any sales or discounts.
“I’ve also been comparing prices between stores ... even if it’s been a bit time-consuming and sometimes frustrating. But it’s been worth it.”
Shoppers were also out in force at The Sydney Fish Market, with more than 350 tonnes of seafood projected to be sold from Monday. Prawns and oysters are once again expected to be the staples of the summer season, chief commercial officer Adam Mourad said.
“From Monday, we will average 55kg of prawns and oysters sold every minute,” he said.
However plenty of Aussies are bucking the trends this year, opting instead to spice up their Christmas lunches with some rising seafood stars.
“Blue swimmer crabs and blue mussels are among the species emerging that haven’t historically been as popular over Christmas,” Mr Mourad said.
“Whole fish like barramundi, snapper and salmon have also spiked in popularity over recent years because they look great as a centrepiece for Christmas lunch.”
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Originally published as NSW shoppers hunting for bargains but will still spend $800 a person this Christmas
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