Australians are starting their festive shopping increasingly early. Most plan to finalise their shopping lists by October (53%) and do the bulk of their shopping by November (58%), new research from Shopify has revealed. This trend is more pronounced for Australians with children living at home, with 70% finalising lists by October and 68% having done the bulk of their shopping by the end of November.
Shopify surveyed 2000 Australian consumers ahead of this year’s Black Friday-Cyber Monday (BFCM) sales, which once again projects to be a frenzy for consumers and retailers alike. Almost half (49%) of Australian consumers intend to do the majority of their holiday shopping that weekend (29 November to 2 December).
The majority of Australians (56%) plan to set a “clear” spending budget, however 36% of Australians say they usually exceed their festive shopping budget.
The biggest spenders this year project to be people that “cherish” the festive shopping season, comprising 9% of respondents. In second place are people with children living at home, who project to spend more than two times as much as those with no kids or with kids that live out of home. It wouldn’t be a festive season without a grinch, a small minority of Aussies (10%) who “can’t stand” the holiday season and project to be the lowest spenders.
“The ongoing hit to discretionary spending means consumers are being extremely strategic with their dollars, a reality reflected both at the till and in Shopify’s data,” says ARA CEO Paul Zahra. “Many discretionary retailers make the majority of their profits during the festive shopping season, but this evolution in consumer habits means they need to adapt how and when they prepare for an earlier gift purchasing period, accommodating customers who are searching for the best deals much earlier.”
Communicating deals to customers earlier helps retailers reach busy shoppers. While 39% of Australians have signed up to brand updates to get the best deals this BFCM, this flips to a majority for those looking to spend more than $430 (65%), young people 25-34 (57%), and parents with kids living at home (56%).
“Merchants need to strategise around a longer sales season, as consumer behaviour shifts towards conscientious planning and away from spontaneity,” says Shopify Managing Director JAPAC Shaun Broughton. “We’ve observed that Australians planning to do the majority of their shopping online tend to start the process earlier than those planning to do it in store. Understanding when certain types of consumers will be planning and shopping can help retailers decide how to best communicate with their customers, manage operations and plan merchandising to maximise the festive shopping opportunity.”