South Australians set for record Christmas spend over the festive period

South Australians are predicted to shell out an eye-watering record amount during this year’s festive period – despite research showing one in five won’t buy presents.

South Australians will spend a record $4.1bn during this year’s festive period, industry data shows, despite more families paring back on the number of presents as the cost-of-living crisis hits household budgets.

New Australian Retailers Association research shows a fifth of people will not buy Christmas gifts for family, friends or work colleagues this year.

And industry leaders warn the 7.3 per cent inflation means consumers will be spending more on the increasingly-expensive Christmas presents or gifts.

Despite the growing numbers of families cutting back, retailers forecast a $4.1bn festive cash splurge, which is a 6.6 per cent increase on last year’s $3.85bn Christmas spend.

Customers will spend an average $712 on gifts this year, according to Roy Morgan survey. The most popular items were alcohol and food, gift cards as well as toys.

Louisa Ferguson, Lucia Holub, Kate Foster and Eva Mannini Christmas shopping in Rundle Mall. Picture: Tom Huntley

The survey found almost a third of customers in SA will start their Christmas shopping earlier while those who will buy “small inexpensive gifts or novelties” has almost doubled in a year.

Almost a third of people plan to buy less this year, according to the survey, compared to a fifth last year.

ARA chief executive, Paul Zahra said South Australians were predicted to spend slightly more than the national average.

“With ongoing supply chain disruptions, many shoppers are also trying to get their shopping in early, to avoid disappointment and stress,” he said.

“Discounts of up to 50 per cent are being offered to shoppers to entice them to complete their Christmas shopping ahead of the big day.

“Incredibly, a quarter of all Christmas shopping was done in the Black Friday/Cyber Monday week.”

Laura Prestia and Matt Iliev taking advantage of the sales in the lead up for Christmas in Rundle Mall. Picture: Tom Huntley

SDA secretary Josh Peak warned retail sales “will continue to be undermined” if wages fail to keep pace with the cost of living.

He said new extra trading hours were a good opportunity for retail stores to maximise Christmas sales.

But he added: “With high inflation and low wage growth, we’re concerned that the Christmas sales period will not meet expectations.”

He said while an incredibly busy time for retail workers, he warned customers to not abuse hard working staff.

Oncology co-ordinator Matt Iliev, 23, of Salisbury East and property manager girlfriend Laura Prestia, 22, of Rosslyn Park, were Christmas shopping in Rundle Mall on Sunday.

The pair spent “about” $650 on clothing, fragrances and other gifts for family, which Mr Iliev joked was “a bit much”.

“We were getting it out the way early and took advantage of the sales,” he said.