One in two (52%) Australians are concerned about managing their Christmas budget this year, according to research commissioned by business management platform, MYOB.
Price is the highest ranked factor in gift purchase decision making for 68% of respondents, followed by quality at 51%. Two in five (40%) say they will pay for Christmas shopping with a credit card and 35% will dip into savings.
Four in 10 are feeling pressure to make personal sacrifices to afford gifts, with 67% of this cohort cutting back on non-essential spending, including dining out and alcohol, and 50% cutting back on essentials like groceries or reducing energy consumption.
MYOB general manager – SME, Emma Fawcett said, “Between interest rates, groceries, bills, and general increase in costs, consumers are looking to make their dollar go further this Christmas with discount gift options. While large discount events can present a challenge for the smaller businesses, the good news is consumers are still looking to support local and Australian retailers.”
Despite the pressure on finances, only 27% of survey respondents said they would be more focused on buying Christmas gifts through large discount websites such as Temu or Wish this year compared to previous years. Close to half (48%) said they are more focused on buying from small businesses this year.
The most popular destination for Christmas shopping is in person at mainstream stores (49%), or in person at local shops or neighbourhood shopping centres (48%). More than one-third (35%) said they will shop mostly online from mainstream Australian stores, and 29% said they would do the majority of their shopping from independent Australian stores.