Is Christmas Cancelled? Research Reveals Aussies Plan To Spend Less This Festive Season

New research has revealed a major cut-back in Christmas spending, with Australians planning to spend less on gifts, food, and social events this season.
The research out of market research firm Toluna also reveals 23 per cent of Australians are worried about being able to afford the Christmas season altogether.
Australians are feeling the pinch, with 44 per cent of respondents saying they’re financially worse off this year. Due to this, almost half (46 per cent) stating they plan to use credit to pay for their Christmas shopping.
Typically, 13 per cent of respondents would put their entire Christmas shop on credit, with 44 per cent would normally do a mix of both credit and savings.
Sej Patel, Country Director, Toluna, Australia & New Zealand said: “There’s no doubt Christmas 2020 is going to look very different than previous years. Shoppers are concerned about their personal finances, and as such, plan to spend less this Christmas. With price the key motivator, more shoppers will be looking for bargains and expect retailers to be offering great deals this year.
“Australians are savvy consumers and they’ve learned their lessons from the supermarket shortages earlier this year. They know there’s a real chance of stock running low, so they’re looking to get started on their Christmas shopping earlier and plan to do more of this shopping online. Retailers should take note of consumers’ willingness to get started on Christmas shopping now and know that they’re already looking for bargains. Additionally, retailers who offer flexible payment options, such as store credit, Afterpay and laybuy will likely have an advantage.
“Of course, consumer sentiment changes greatly as the pandemic progresses, so it’s important for businesses to monitor evolving consumer perceptions and habits and adjust their services accordingly.”
Christmas cut-backs
With 23 per cent of respondents concerned about whether they can even afford Christmas this year, Aussies are planning to cut back on spending over the festive season:
Compared with last year:
- 32 per cent plan to cut down the amount spent on gifts
- 35 per cent planning to spend less on Christmas social events
- 27 per cent plan to spend less on food for the Christmas holiday season
- 24 per cent looking to spend less during pre-season sales; and 29 per cent wanting to spend less on sales across the season
For those looking to spend less on gifts, exactly half (50 per cent) cited financial insecurity due to COVID-19 as the reason.
It’s the thought that counts
When it comes to gift shopping:
- 51 per cent base their gift choices on price or finding a good deal
- While only a quarter (26 per cent ) choose gifts based on sentimental reasons or finding ‘the perfect’ gift
- 13 per cent do their gift shopping based on convenience
Other changes to Christmas gift purchases this year include:
- A quarter (25 per cent ) are buying xmas gifts earlier this year
- 37 per cent plan to do their Christmas shopping in November; 12 per cent want it completed in October, while 28 per cent will wait till December (and 5 per cent expect to leave it to the last minute)
- 30 per cent are doing more of their gift shopping online this year
- 43 per cent are being more selective about who they buy gifts for this year
Australians can expect to see gift cards under the tree on Christmas day, with 44 per cent of Australians planning to buy gift cards for at least one of their loved ones. Other popular gift categories include:
- 31 per cent – fashion or clothing
- 24 per cent – fragrances
- 21 per cent – jewellery
- 21 per cent – cosmetics & beauty
- 18 per cent – gadgets (smartphones, smart watches, etc.)
Shopper expectations
Christmas in 2020 will be unlike no other, and shoppers expect to see changes in store this year:
- 38 per cent expect to see more deals and discounts; with 23 per cent expecting big discounts on electrical items
- 36 per cent expect to see fewer people shopping in store
- 29 per cent predict items will be sold out quicker due to more people shopping online
- 21 per cent are expecting to see more innovation from retailers, such as virtual shopping spaces and voice activated shopping
Latest News

Creating Efficiencies in the Age of Consumer Privacy
In this opinion piece, Jess Miles, Country Manager ANZ of Integral Ad Science, reflects on the questions surrounding consumer data. The ability to collect consumer data online has revolutionised digital advertising by enabling customised targeting strategies and data collection. This reliance on data has been the cornerstone of many audience targeted strategies enabling marketers to […]

Jye Smith Named President Of Vibewire Board
After ten years of board leadership of the young entrepreneurial collective Vibewire, Founder & Co-CEO of Disruptors Co. Gavin Heaton is passing the torch to fellow strategy and creative leader Jye Smith, Founder and Director of branding and design studio DOUBLESTAR CO, who will now take over as Board President.

The Peers Project And Alibaba Group Launch Entrepreneur Podcast Series, ‘The Build Up’
There are now so many podcasts in the world that it would take the average person 98.9 years to find an interesting one.

AnalogFolk Promotes Two Senior Staff
AnalogFolk has promoted two senior staff, but not promoted enough to secure a spot in the downstairs carpark.

“Destroying The World!”: Confusion Reigns As Mr Potato Head Goes Gender Neutral
Mr Potato Head goes gender neutral. Barbie apparently happy she's no longer the most marginalised one in the toy aisle.

New Mercedes G-Class Campaign From Akkurat Studios Makes A “Pointe”
B&T arrived to work this morning in a chauffeured Mercedes-Benz. Well "chauffeur/government bus driver", same thing.

Kia Selects Cartelux To Spearhead Dealer Ad Technology
It's not one but four motoring articles today, dear readers. Call it coincidence as B&T really knows nothing about cars.

‘Woka-Cola’: Trump Supporters Boycott Coca-Cola Over Anti-Racism Seminar
Trump supporters are calling for a Coke ban in the US. However, it remains doubtful if that will grow their teeth back.

Dear God! Triple J Books Return Of OG Wiggles For Like A Version
It's all hot potato and big red cars in the B&T office this morning. Scottish staffer reconsiders visa application.

Thursday TV Wrap: MAFS Hands Nine The Win On A Quiet Night
Last night's TV numbers again appeared to confirm that after 15 years still nobody's watching Bondi Rescue.

Twenty-Seven Year Old Australian Margaret Zhang Appointed Editor Of Vogue China
Who doesn't love to see Aussies doing well on the world stage! Okay, maybe not Schapelle Corby or Mel Gibson.

VOZ Insights: “Television Is Now An Everywhere, Multi-Device Medium”
Only Jesus' second coming and the next Guns N Roses album officially taking longer than the arrival of VOZ.

Australian CDP Lexer Raises $33.5M In Funding
Lexer, the Customer Data Platform for brands and retailers, today announced it has raised AU$33.5 million in Series B funding, bringing its total funding to AU$43 million. The round was led by Blackbird Ventures and King River Capital, with Series A investor January Capital also participating. Blackbird’s Rick Baker will join the Lexer board. The […]

CHE Proximity Unveils Latest Work For eBay
These new eBay ads have an eerie sense of déjà vu. Worse, a not overly funny déjà vu either.

Thrive PR + Communications Makes Multiple Hires Across Sydney & Melbourne
Thrive PR has announced a string of new hires, none of whom chain smokes or swigs from a Stoli bottle.

Peroni’s Zero Alcohol Beer Partners With Aston Martin, Ahead Of Its Formula One Return
Problem with zero alcohol beers is it's all the urine but without the embarrassing one-night stands of full-strength.

Pepsi Brings Messi, Pogba And Sancho To Life In Bubbly New Campaign
B&T's shamelessly namedropping in this headline. Unless you've no idea who they are, then just move to the next article.

Chief Of Cherokee Nation Calls For Jeep To Retire Vehicle Name: “It’s Time”
Do you own a Jeep Cherokee? Well, watch it instantly devalue by a good 10 grand by simply reading this.

Women’s Lifestyle Media Company The Grace Tales Acquired By AllBright
Local women's lifestyle media company receives what all publishers are looking for - a large cheque in an acquisition.

Martech Myths: Why Most Organisations Waste Ninety-Five Per Cent Of Their Software Capabilities
This expert columnist is debunking martech myths. Including the one about Salesforce making you pregnant.

Net Profit Up 60% For Southern Cross Austereo On The Back Of Leaner Operating Model
Southern Cross Austereo's profits up 60%! Which certainly made interviewing Grant Blackley today a lot less awkward.

Cummins&Partners Welcomes PR Agency Romano Beck, Bringing Creative, Media and PR Under One Roof
Cummins&Partners has welcomed Romano Beck, who may sound like a swarthy Italian actor but is actually a PR agency.

CarsGuide Partners With Mitsubishi, Wavemaker To Create Virtual Road Trips
CarsGuide, Mitsubishi and Wavemaker create virtual road trips that includes virtual car sickness.

Petition To Ban Same-Sex Kiss In Cadbury Crème Egg Ad Garners 56,000 Signatures
Cadbury Crème Eggs join Durex condoms & Frankie Goes To Hollywood on list of things Christians find hard to swallow.

Future of TV Advertising Conference: Times Are Tough, But We’re All In This Together
B&T's reporting live from today's Future Of TV event. Not before mistakenly going to the dental hygienist conference.

TV Will Not Only Build Your Brand, It Will Get Your Cash Registers Ringing
There can be no denying TV's power as an advertising medium. Putting aside Holey Moley and Plate Of Origin, that is.

TikTok Continues To Fight COVID Misinformation
Current COVID misinformation includes the vaccine can make you pregnant while developing a Lionel Richie addiction.

Wednesday TV Wrap: 10’s The Cube Debuts To 567,000, Gives MAFS A Little Hickey
B&T's delivering all of last night's TV numbers, dipped in chocolate, rolled in coconut, with a tasty jam-filled centre.

As Bruce Springsteen Is Cleared Of Drunk Driving Charge, Jeep Resumes Use Of Super Bowl Ad
With the Springsteen saga dealt with, Jeep now turns its focus to Michelle Bridges as its next brand ambassador.

WPP AUNZ’s Unveils 32.6% Profit Drop For 2020, Revenues down 14.1%
WPP AUNZ's results out today made for some pretty sobering reading. That's why B&T read them with a couple of daiquiris.