Huge amount Australians plan to spend on Christmas presents

Data has revealed just how much Aussies plan to spend on Christmas presents this year, and the price tag is eye-watering.

Data has revealed the huge amount Aussies plan to spend on Christmas presents in 2023 and it’s more than last year.

The Christmas Retail Trends Report surveyed 1014 shoppers from across Australia to understand their budgets in the lead-up to the festive season.

The report, conducted by Australian Consumer and Retail Studies at Monash Business School, found Christmas present budgets had increased year-on-year.

Here is how much Aussies plan to spend on presents.

Respondents indicated that they planned to spend, on average, $427 on gifts for immediate family, $246 for extended family, $149 for friends and $266 for themselves — or a staggering $1088 in total.

By category, it amounted to budgeting 40 per cent more for electronics compared to last year, 16 per cent more for household goods and 16 per cent more for clothing, footwear and accessories.

Two-thirds of Aussies (65 per cent) said they planned to take advantage of a sales event, with the most popular being Boxing Day and Black Friday, with $370 and $434 average spends respectively.

Physical stores were still the most popular Christmas shopping venue, with 80 per cent of Aussies planning to shop at one, compared to 43 per cent at the online outposts of physical stores (such as the David Jones website) and 44 per cent at online-only retailers (such as The Iconic).

Aussies plan to spend more than last year. Picture: Peter Wallis

Lead researcher Eloise Zoppos said the increases flew in the face of Australia’s poor economic outlook, potentially due to the return of big family Christmases post-Covid.

“We’ve consistently found over the past few years since Covid, that people have told us they’re spending more and more each Christmas on gifts,” Dr Zoppos said.

“One reason could be that restrictions have eased and people are having larger gatherings, and seeing more family and more friends at Christmas.

“Of course, the other side to that is there has been inflation across some categories so spend could also be attributed to a perceived increase in the cost of certain categories.

“Our results are likely a mix of people seeing more people, and spending more money on gifts for family and friends, and also some inflation element where people are perceiving the cost of products are more than they have been previously.”

There are some ways Aussies can save.

Tips to save money on Christmas presents

1. Shop around: Different stores sometimes set their own prices for the exact same item and may have different sales and discounts available. You might even stumble across the perfect gift that wasn’t on your radar.
   
2. Shop sales: Sales are a great way to get a long-coveted item on a budget. Black Friday is now bigger for spending than Boxing Day in Australia and, being just before Christmas, it’s the perfect day to pick up gifts.
   
3. Avoid delivery fees: Online shopping may be a convenient way to do your Christmas shop, but delivery fees can add up. Try to stick to retailers that offer free delivery or opt for click and collect.
   
4. Use loyalty points: Many Aussies choose to save up their loyalty points and rewards at supermarkets, department stores and other retailers to use during the Christmas period. This can help to trim costs at one of the most expensive times of year.