As we approach the 2024 holiday season, Australian businesses face a unique landscape shaped by both economic challenges and changing consumer behaviours.

Despite ongoing cost-of-living pressures, the Christmas shopping season remains a critical opportunity for brands and retailers to capture consumer demand. The findings from the 2024 Australian Christmas Shopping Intentions: The Evolving Christmas Shopper Report provide a cautiously optimistic view, revealing that 76% of Australian consumers plan to spend more or the same as last year, with an average spend of $660 per shopper.

We’ll break down the key insights from the report and outline how brands can strategically respond to this year’s trends to maximise holiday sales.

The Hunt for Bargains Dominates Christmas Shopping Decisions

Economic conditions have made sales promotions and discounts the top priority for Australian consumers this Christmas. A staggering 70% of respondents cite discounts as the driving factor behind their holiday purchase decisions. This year’s holiday shoppers are more cost-conscious than ever, favouring deals over spontaneity.

Strategic takeaway:
Offering early bird offers in November can help brands capture a larger share of holiday spending. To offset the impact of discounting on margins, brands can differentiate by offering enhanced service experiences, such as in-store brand ambassadors and Virtual Product Advisors, delivering added value without compromising profitability.

Late November Becomes the New Peak Shopping Period

For the first time in nine years, late November has overtaken December as the peak period for Christmas shopping. With 63% of consumers planning to shop in November (up from 53% in 2023), the influence of Black Friday and Cyber Monday sales is undeniable. A full 37% of Australians intend to finish their shopping in late November, capitalising on the biggest sales of the year.

Strategic takeaway:
Brands and retailers of all sizes must optimise both online and in-store channels to capitalise on the growing late-November shopping trend. Focus marketing efforts on November campaigns and ensure operational readiness for a potential sales surge that could shape the holiday season.

Omnichannel shopping reigns supreme

Consumers are seamlessly moving between online and in-store shopping channels, with 89% of Australians planning to use both formats this Christmas. While online marketplaces like Amazon and eBay are leading the charge, physical stores remain essential for the in-store experience that shoppers crave.

Strategic takeaway:
Adopting an integrated omnichannel strategy to meet consumers where they are will be critical this holiday season. Ensuring that both online and in-store experiences are cohesive will allow brands to engage shoppers at every touchpoint. Consider offering options like click-and-collect and exclusive in-store deals to capture both online and physical store traffic.

The Power of Black Friday and Cyber Monday

In 2024, 67% of Australian consumers plan to shop Christmas gifts during sales events, with Black Friday emerging as the most popular choice (60% of respondents). The growing importance of Cyber Weekend sales, which now represents the unofficial start of Christmas shopping, reflects a broader shift toward pre-Christmas shopping during these high-traffic events.

Strategic takeaway:
Retailers should prepare for Cyber Weekend as a critical moment in the holiday season. Invest in promotions that will entice shoppers to take action early and ensure that your online and in-store channels are ready to handle increased traffic.

2024 Christmas Shopping Lists

The top gifts for Christmas 2024 reflect a shift in consumer preferences. This year, clothing and shoes have emerged as the most popular gift category, overtaking gift cards and electronics for the first time in nearly a decade. Books and gift cards follow closely behind as favourite choices. Younger shoppers (ages 18-34) are leading the way, with 58% planning to purchase clothing and shoes this season.

Strategic takeaway:
Retailers should highlight top-selling categories like clothing, books, and experiences in their promotions. Provide gift ideas will resonate strongly with Christmas shoppers this season.

Winning the 2024 Holiday Season

The 2024 Christmas shopping season brings both challenges and opportunities for Australian brands and retailers. To capture this Christmas season’s shoppers, brands must focus on understanding and adapting to shifting consumer behaviours. Emphasising attractive deals, engaging customers early, and offering omnichannel convenience will be crucial to maximising sales.

Aligning these strategies with key trends, such as early holiday shopping in November and consumers’ preference for sales events, will position brands to capture a greater share of the holiday market.

For a deeper dive into the latest consumer trends and actionable strategies, download the 2024 Australian Christmas Shopping Intentions: The Evolving Christmas Shopper Report.