Australians are expected to spend $10.5 billion on Christmas gifts this year, according to the September edition of the Fifth Quadrant Consumer Insights Study.
This is despite 71% of respondents believing the cost-of-living crisis will only get worse over the next 12 months.
When it comes to spending this Christmas, Gen Z is leading the way, with more than a quarter (26%) of respondents planning to spend more on gifts than last year.
In terms of generational spending, Gen X is in the lead, with an expected spend of $692 (more than $100 ahead of any other generation). Boomers are, however, at the forefront when it comes to total spend, with sheer weight of numbers helping them contribute over $3.5 billion in gift purchases (vs $3.2 billion from Gen X).
Aussies are setting budgets to avoid getting carried away. Gen Z leads the way on responsible spending, with almost three-quarters (73%) of respondents setting a budget for Christmas spending. Despite these efforts, more than two in five (44%) Gen Z respondents still admit to typically going over budget.
Looking beyond Christmas, more than nine million Australians expect to shop the Boxing Day/New Year sales, according to Fifth Quadrant, spending a total of $3.4 billion. Men ($2 billion) are leading the way here, comfortably outspending women ($1.4 billion).
Younger consumers are also much more likely than their older counterparts to be looking for a post-Christmas bargain, with Gen Z at $293 and Gen Y at $273.
“All in all, it’s evident that it will take a lot more than a cost-of-living crisis to dim the spirit of celebration and generosity that defines the holiday season in Australia, with Aussies gearing up to welcome the year’s end with open hearts and open wallets,” says Fifth Quadrant Director Ben Selwyn.
“For retailers, this means starting planning now to ensure they hold stock of popular items, and are ready for increased online and in-store traffic in the lead-up to Christmas.”