Help us improve our website by completing a quick survey. Start survey now

Commonwealth Bank media release

FESTIVE SPENDING TO PEAK AS FOUR MILLION CONSUMERS PLAN TO HIT THE SHOPS THIS WEEKEND

  • Consumers forecast to spend $2.2 billion more than last year
  • Shoppers in New South Wales and Victoria expected to spend the most per person on Christmas gifts, with Queensland the most frugal
  • Healthy cash flow key to a successful Christmas trading period for businesses

More than four million1 consumers are set to do the bulk of their Christmas shopping this weekend, according to new research from Commonwealth Bank.

While businesses are anticipating a spending rush in the final few days before Christmas2, according to a Commonwealth Bank survey of more than 1,000 Australians, the majority of consumers will buy their presents on Saturday 14 December 2013 (21 per cent) and Sunday 15 December 2013 (20 per cent).

Nationwide, consumers are forecast to spend more than $18.4 billion over the Christmas period3, an increase of $2.2 billion4 on the $16.2 billion spent over the same period in 2012.

According to Adam Bennett, Executive General Manager Local Business Banking, Commonwealth Bank, businesses can expect a positive finish to the year during the peak holiday season.

“With consumers set to increase their spending on everything from Christmas gifts, to entertaining and dining, to the Boxing Day sales, businesses should take note of the anticipated busiest shopping periods. While millions of consumers are planning to spend big this weekend, businesses should also note the expected spending rush before and after Christmas as consumers snap up last minute gifts and bargains in the sales.

“My advice for businesses is to ensure they have enough staff and stock to cover both pre and post-Christmas shopping to help maximise returns over this crucial trading period,” said Mr Bennett.

Christmas gifting to reach $7.9 billion

Australian consumers are forecast to spend more than $7.9 billion on Christmas gifts alone this year, an increase of $100 million on 2012. Spending on festive vacations ($4.3 billion) and entertaining friends and family at home ($2.2 billion) are also expected to see increases of $600 million each year-on-year.

Other interesting insights include:

  • Despite access to more bricks and mortar stores, those living in capital cities are more likely to do their Christmas shopping online than those from regional areas (31 per cent versus 26 per cent).
  • Men are planning to spend more on entertaining friends and family than women ($386 versus $301)5.
  • Those aged 18 to 24 will spend more on festive vacations than their Generation Y counterparts aged 25 to 34 ($1,046 versus $814)6.

According to the research, spending will differ significantly across the country.

Please note due to low sample sizes in TAS, NT and ACT data for these areas is not available.

Cash flow most important for businesses

Although businesses are expecting their online and bricks and mortar sales to increase – anticipated to be up seven per cent and four per cent respectively – the most important factor impacting success over the Christmas period is:

  • Having a healthy cash flow (81 per cent).
  • Accurate sales forecasting (63 per cent).
  • Accurate prediction of stock requirements (59 per cent).

“While businesses are clearly looking forward to the busy Christmas trading period, the last thing they need to be worrying about is cash flow. In order to gain immediate access to their funds businesses should ensure they have same-day settlement on their merchant transactions during this busy period. Likewise, we know the importance of accurate sales forecasting, particularly at this time of year, which is why we offer merchant customers access to industry data and consumer spending trends via our Better Business Insights Report,” concluded Mr Bennett.

 

--ENDS--

Notes to editors

National consumer expenditure breakdown (2012 versus 2013):

The following figures are based on the projected spending during Christmas 2012 (between 1 December 2012 and 31 January 2013) and Christmas 2013 (between 1 December 2013 and 31 January 2014).

About the research (consumer):

  • The study was conducted amongst 1,028 Australians aged 18 years and over.
  • Surveys were distributed throughout Australia including both capital and non-capital city areas.
  • Fieldwork commenced on Friday 15 November 2013 and was completed on Monday 18 November 2013.
  • After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.

About the research (business):

  • The study was conducted amongst 1,014 Australians aged 18 years and over who are a business owner or senior business decision maker of businesses with between 1-199 employees.
  • Surveys were distributed throughout Australia including both capital and non-capital city areas.
  • Fieldwork commenced on Thursday 14 November 2013 and was completed on Tuesday 19 November 2013.
  • After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.

1 Based on Lonergan Research data and ABS population estimates, 4.4 million consumers will do the bulk of their Christmas gift shopping on Saturday 14 December 2013 and Sunday 15 December 2013

2 According to a study of 1,014 owners or senior decision makers of businesses with between 1-199 employees, the busiest bricks and mortar Christmas gift shopping days are anticipated to be between Wednesday 18 December 2013 and Monday 23 December 2013.

3 The Christmas period within this release refers to the Christmas period (1 December 2013 to 6 January 2014) and the Boxing Day/new year sales period (26 December 2013 to 31 January 2014).

4 According to Lonergan Research, consumer spending was predicted to be $16.2 billion between 1 December 2012 and 31 January 2013 and $18.4 billion between 1 December 2013 and 31 January 2014.

5 Among those who are planning to purchase various items in preparation for entertaining their friends and family at Christmas.

6 Among those who are planning to go away on vacation this Christmas.

7 This figure is based on the finding that 24 per cent of Australians plan to go on vacation over the Christmas period, spending on average $1,086. $1,086 divided by 24 per cent provides the average spend on vacations per Australian, equating to $260.64.

8 This figure is based on the finding that 39 per cent of Australians are planning to buy something in preparation for entertaining friends and family at home, spending on average $343. $343 divided by 39 per cent provides the average spend on entertaining friends and family per Australian, equating to $133.59.

Media contact:


Kate Davies
Commonwealth Bank
(02) 9118 7370
kate.davies@cba.com.au

Loading…