Aussies start holiday shopping early amidst cost-of-living pressures

53% plan to finalise their shopping lists by October.

Australians are beginning their holiday shopping earlier this year due to ongoing cost-of-living pressures.

About 53% of consumers plan to finalise their shopping lists by October, with 58% aiming to complete most purchases by the end of November, according to a new research from Shopify as reported by the Australian Retailers Association (ARA).

This trend is particularly strong amongst families, with 70% of parents planning to finalize their lists by October and 68% having completed most of their shopping by November’s end.

The survey of 2,000 Australian consumers, conducted in advance of the Black Friday-Cyber Monday (BFCM) sales from 29 November to 2 December, found that nearly half (49%) intend to do most of their holiday shopping during this period. Whilst 56% of Australians plan to stick to a clear spending budget, 36% admit they typically exceed it during the holiday season.

Amongst respondents, 9% identify as “cherishers” of the holiday shopping season and expect to spend the most, while families with children living at home plan to spend more than twice as much as those without children. Conversely, 10% of Australians classify themselves as "grinches," indicating they dislike the holiday season and will spend the least.

Paul Zahra, CEO of the Australian Retailers Association, highlighted that consumers are becoming more strategic with their spending. He noted that retailers need to adapt to changing shopping habits and prepare for early gift purchasing as consumers look for the best deals.

Communication of promotions is essential for retailers, with 39% of Australians signed up for brand updates to find BFCM deals. This figure rises to 65% among those planning to spend over $430, 57% of young shoppers aged 25-34, and 56% of parents.

Shaun Broughton, managing director of JAPAC at Shopify, stressed that retailers must prepare for a longer sales season, as online shoppers tend to start earlier than in-store shoppers.

Key findings indicate that 31% of shoppers are looking exclusively for discounted items, and 26% rely on recommendations from friends and family. Whilst 45% feel satisfied with the deals they find, 24% experience buyer's remorse after the holidays.

Additionally, 63% of respondents prefer a hybrid shopping model, buying small items online and visiting stores for larger purchases.

Technological features also play a role, with 36% using price comparison tools and 27% using mobile apps. Family influences shopping decisions for 46% of Australians, significantly more than celebrities or influencers, who influence only 7%. As the festive season approaches, retailers must adapt to these consumer behaviors to maximize sales opportunities.