Australian Pre-Christmas Spending Expected to Remain Flat in 2023

Australia’s top retail association, the Australian Retailers Association (ARA), anticipates that pre-Christmas spending in 2023 will remain nearly the same as last year’s figures. Projections from the ARA and Roy Morgan suggest that the November to December 24 Christmas trading period will see approximately AUD 66.8 billion in spending, a slight increase of 0.1% from the previous year.

Food spending is expected to account for the majority, totaling AUD 26.7 billion, with a 2.4% increase from the previous year. Department stores and other retail categories like recreational goods, books, and cosmetics are poised for 2.9% and 1.7% growth, respectively.

However, categories like hospitality, household goods, and clothing may experience a softening in spending leading up to Christmas. ARA CEO Paul Zahra attributed the marginal increase in spending to supply chain price increases and population growth but noted that overall Christmas spending, excluding these factors, is in decline.