Although the rising cost of living is biting into budgets, most Australians are keen to celebrate their first restriction-free Christmas since 2020, and there are key shopping tips to keep in mind.
As Christmas shopping season kicks into gear, with Black Friday sales this week, almost 40 per cent of consumers expect to spend less on gifts this year, according to the Westpac Melbourne Institute Consumer Sentiment Index.
This is the highest proportion planning cutbacks since Westpac started asking about holiday spending in 2009, and comes as Australians’ optimism over the state of their finances is the weakest since the early 1990s – sitting below even Global Financial Crisis levels.
But Queensland University of Technology consumer and retail expert Gary Mortimer told The New Daily that many shoppers might not follow through on their plans to save.
He said when it comes to consumer sentiment data, it’s important to remember the numbers reflect intentions, not actions.
“When we actually look at the real data, particularly around retail sales, it clearly shows that we’re still spending despite subdued consumer confidence and sentiment,” Dr Mortimer said.
Shoppers, both in-store and online, spent $35 billion in September, a figure almost 18 per cent higher compared to the same time last year, Australian Bureau of Statistics data shows.
Dr Mortimer expects this trend of strong spending, underpinned by sales such as Click Frenzy and Black Friday, will lead shoppers to spend $40 billion over November – a record high.
Australians plan to spend an average of $860 this festive season, with that split $540 on gifts and $320 on entertainment, Paypal Australia data shows.
If you are among the seven in 10 Australians that told Paypal they will shop the major sales coming up to bag bargain Christmas gifts, read on to find the top four tips to save on shopping this sales season.
Plan ahead
If you want to avoid falling victim to the endless sales promotions targeting you everywhere from the TV to your social media, think about what you want to buy ahead of time.
This will not only help prevent any accidental doubling-up of presents, but also means you’ll be able to set a budget which you will hopefully stick to as the sales season wears on.
Choose cash over card
This might seem like an old-fashioned concept, but having cash will help you keep better track of your spending.
“If you’re going to spend $500 on gifts this year and $200 on food and dining, take that cash out ahead of schedule,” Dr Mortimer said.
“We know that if you’re got cash rather than a card, you’re less inclined to overspend and you’re more inclined to budget more carefully.”
Shop early
While having cash on hand is all well and good if you’re happy to shop local, email inboxes and social media feeds will soon be flooded with very well-targeted sales alerts for online shopping sites.
If you need to do some holiday shopping, Dr Mortimer warned not to ignore these sales for too long, especially if you want your items delivered by Christmas.
“I’m very cognisant of the fact that if I’m buying online in November, I can generally guarantee delivery before Christmas,” he said.
Australia Post releases cut-off dates for Christmas post, but there’s still no guarantee mail will reach its destinations in time as unavoidable factors like natural disasters and customs delays can wreak havoc on delivery times – so get in quick with your online shopping.
Check loyalty benefits
If you’re looking to save on your Christmas feast, staying on top of loyalty program offers is one of your best bets.
Paypal found 34 per cent of Australians will use loyalty points to maximise their spending power this season, along with coupons, and cashback offers.
While retailers are undoubtedly keeping tabs on your data in exchange for any rewards, unlike other organisations, you won’t be risking anything as important as your licence or Medicare number – and you could save hundreds.
Dr Mortimer said Woolworths’ recently-launched Rewards Extra subscription option for Everyday Rewards loyalty card holders is one of the best examples of savings to be had.
For $7 per month, or $59 per year, Everyday Rewards members can get 10 per cent off every month on one shop at Woolworths and one shop at BIG W, in-store or online.
If you’re planning big family gatherings for the holiday season, especially as borders are now wide open, you could potentially make your money back over a couple of months.
Keep an eye out for more loyalty card offers from other retailers to get better value out of your Christmas shop.
