South Aussies to spend less on Christmas presents this year as cost of living crisis hits home
South Australians will spend a bit less on Christmas presents this year, research by BankSA shows.
The cost of living crisis is taking some of the fun out of Christmas, with South Australians intending to spend less overall on presents this year, research by BankSA shows.
We are also more likely to be spending the festive season at home, with less to be spent on local, interstate and overseas travel, with 98 per cent of respondents surveyed by the bank saying the rising cost of living was the biggest factor in their intention to spend less on Christmas overall this year.
But on the upside, the amount spent per gift will increase from $164 to $214, while overall spend on gifts per consumer is likely to fall from $962 last year to $932.
BankSA general manager business, David Firth, said celebrating Christmas with family and friends over a meal was the highest priority for people this year, with 83 per cent rating this as important, ahead of gift giving at 72 per cent.
“Close to a third of South Australian consumers indicated they were likely to spend less this year than last year, offsetting the 9 per cent who said they would spend more,” Mr Firth said.
“Consumers are naturally slightly pessimistic about how much they expect to spend compared with previous years, but this is the biggest negative gap in spending intentions we’ve seen since 2010.
“While inflation is showing signs of easing, cost pressures on households remain high, which is impacting how much they’re prepared to spend on discretionary items such as Christmas presents.’’
Workplaces are also being a bit more tight, with the number of employers looking to hold a Christmas party dropping 5 per cent to 73 per cent.
We are also feeling less charitable this year, with intentions for charitable gift purchases falling 6 per cent to 24 per cent.
Credit card usage is also on the rise, likely fuelled by the cost of living crunch.
We still plan to have a good time though, with food and drink a priority.
“Consumers are intending to celebrate less this year, with increasing spending intentions on food and groceries, but decreases in spending intentions for all other categories,’’ the BankSA report into the survey says.
“Consumers are looking forward to spending time with family and friends, and eating, drinking and celebrating.
“However their main concern is the costs associated, and if household financial pressures increase prior to Christmas, spending is likely to reduce further.’’
John Caporaso, who owns Campbelltown institution Mercato, which was founded by his parents Imma and Mario, said they focused on supplying great produce for their customers, with a focus on local supply.
“For example our seafood is straight from the ocean, not the freezers – we only sell what is caught that day,’’ Mr Caporaso said.
“I like to say we’re at the mercy of the oceans, not the freezers. So our selection is not as broad as you would find in bigger retailers, but it’s fresh and locally caught.
“We make our own bread and pastries on premises. We do things like they were done in the Italian villages. People come to Mercato because it feels like an extension of their home.”
Not surprisingly the Italian providore sells a lot of panettone, with about 120 flavours in stock across 25 brands.
“The sorts of gifts our customers buy from us at Christmas are extra virgin olive oil, gourmet balsamic vinegars, cheeses, chocolates, wine, spirits and gift hampers. All edible and drinkable gifts, perfect for the Christmas table,’’ Mr Caporaso said.
Mr Caporaso said so far this season had been “OK, but we’re tracking slightly lower than last year’’.
“It could be that people are leaving their Christmas shopping to the last minute,’’ he said.
“We’re seeing a lot of deal-savviness due to cost of living challenges. We had a 20 per cent off sale a couple of weeks ago as part of our market day experience and that was very successful. It showed us people are looking for bargains.”
Mercato is looking to expand next year with a new location in the city coming soon.
Most Popular Gifts
Gift cards 72 per cent
Clothes 63 per cent
Books 61 per cent
*Likelihood of purchase
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