• Tis the season to spend less – 66% of Australians say they will cut back spending on Christmas this year
• Kmart expected to be the most popular retailer for Christmas gifts, followed by Amazon
• Majority of Aussies say they will not go into debt as a result of Christmas spending

A whopping 66% of Aussies will spend less on Christmas this year compared to last year due to the cost of living, according to new findings from DemosAU.

The poll asked 2,010 Australian adults whether they would cut back spending on Christmas this year compared to last year due to the cost of living.

Around 66% of shoppers said they would, while 28% of respondents planned not to cut back and 6% were unsure. 

This compares to 2023 research commissioned by the Australian Retailers Association which found only 30% of shoppers would cut their Christmas gifting budgets in 2023, and 61% would look to maintain 2022 spending.

DemosAU Head of Research George Hasanakos said it was further proof that the cost of living is causing many Australians to tighten their budgets.

“Australians are feeling the impact of cost of living and with Christmas coming up we are seeing huge numbers of people planning to spend less on Christmas than they did the year before,” Mr Hasanakos said.

“These are people across all age demographics – from 18-year-olds all the way up to over 55’s – and the research found it didn’t matter if they were renting or had a mortgage, they are still feeling the pinch.”

But going into debt to fund Christmas spending is not something most Aussies say they will experience.

Most consumers said they would not go into debt as a result of Christmas spending (74%), while 18% said they would and 8% don’t know.

Shoppers were also asked which retailers they planned to buy their Christmas gifts from (see table next page).

Kmart was the clear favourite (23%) while Amazon was second most popular at 15% and small niche retailers coming in third at 12%.

“Kmart has a big brand in Australia but it also offers that cheaper price point so that could be even more evidence of Aussies looking to save money this Christmas,” Mr Hasanakos said.

Which retailer do you plan to buy most of your gifts from this year?

For a fully copy of the report click here.