The majority of Australians will be more frugal in the upcoming holiday season amid inflation, Deloitte’s annual Retail Holiday Report showed.
The report noted that 76 per cent of respondents will cut back on overall spending while 67 per cent are still considering making small splurges.
In addition, 48 per cent expect to purchase fewer goods and services and 95 per cent are looking into best deals as their priority. Around 32 per cent said they would leave if not offered some sort of discount.
“On the back of real retail turnover per capita not growing since mid-2022, consumers are planning to spend $1002 on average this year, down 18.9 per cent from 2023,” said Elise Sharpley, Deloitte consumer products and retail sector leader.
“Retailers will be working hard to entice these consumers to open their wallets as the silly season heats up.”
Meanwhile, 51 per cent of retailers anticipate sales growth, down from 57 per cent last year.
About 40 per cent of retailers think customers will not pay full price and 41 per cent forecast improvement in consumer confidence over the next 12 months.
