Christmas spending boom: why November is the new December
A global supply squeeze is just one of the reasons why a fast start to Christmas spending is vital in 2021. Here’s what experts say.
Shoppers can save hundreds of dollars over the next six weeks – and a pile of potential stress – by starting their Christmas spending now.
November has become the boom month for shopping, helped by the increasingly popular Click Frenzy, Black Friday and Cyber Monday online sales.
Last year Aussies spent more money at retailers in November ($31.7 billion) than in December ($30.4 billion), Australian Bureau of Statistics figures show.
Finance and retail specialists recommend avoiding the December rush and higher prices by buying gifts and toys, drinks and non-perishable food, decorations and travel before November 30. And the Australian Competition and Consumer Commission last week urged people to order Christmas presents early as global supply problems threaten long delays.
Consumers are being urged not to go overboard amid post-lockdown celebrations, avoid loading up on debt, have detailed plans for presents and team up with family members.
New research by online retailer Next.com.au has found 87 per cent of shoppers will seek out sales to save money. Click Frenzy runs for 53 hours from Tuesday night, while Black Friday is November 26 but retailers start offering big discounts several days earlier.
A Next.com.au spokeswoman says shipping costs are a huge factor for online customers, and suggests using retailers that offer free delivery for orders over a certain amount.
“Make sure you buy all your presents on a website at the same time to save on shipping rates,” she says.
LCI Partners managing director and accountant Gerry Incollingo says impulse buying at the last minute is expensive, and he recommends using the November sales.
“If you go in with a plan, some of the online sales will help you save a lot of money,” he says.
“Try to shop local. It has been a hard year for many businesses, so trying to support your local retailer may save you money, but will also help them stay in business. It will also help you save on delivery fees.
“Consider pairing up with another family member or friend if you want to purchase more expensive gifts.”
Research what items cost at different retailers, because most will match a competitor’s price and some – such as Officeworks, Chemist Warehouse and Retravision online – will go 5-10 per cent lower.
Officeworks general manager of merchandise Jim Berndelis says: “we encourage savvy shoppers to shop around and if they find a lower priced item with a competitor, we’ll not only match it, but we’ll beat it by 5 per cent”.
The top tip from Cashrewards head of brand Matthew Poulier is to “shop early”.
“Logistics networks are backed up and it will get even worse when the flood of Christmas shopping pours in, so shop early to save money on shipping and ensure you get your goods on time,” he says.
Briana Canty, 30, usually starts Christmas shopping in November but this year plans to finish it this month too.
“With products going out of stock and the delay in delivery, I don’t want to be spending the week before Christmas chasing down presents and online orders,” she says.
“Most of my shopping is now done online compared to a few years ago where I had found most of my gifts instore.”
Wealth coach and chartered accountant Leah Oliver says many people may prefer a “less is best” approach, so suggest one quality gift rather than a “tsunami of junk”.
Temptation to travel this Christmas is high after lockdowns and border closures, but Oliver says people should not go overboard with spending.
“Book your holiday destination early to avoid last minute penalties and also disappointment, as demand is high and places are filling up fast,” she says.
SHOPPING TIPS
• Use a website’s favourite function or make a list instead of adding items to the cart. This avoids being overwhelmed by overflowing carts.
• Check a retailer’s returns policy before finalising your purchase.
• Shop with a list, stick to a budget and keep track of what you buy.
• Consider click and collect to save money on shipping costs and time.
• Prepare to haggle, because most retailers price match.
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