“Christmas spending in decline”: ARA warns of lower discretionary purchases

Australian consumers are continuing to tighten their budgets as the cost of living crisis – including high interest rates – bites into their disposable income. As a result, the Australian Retailers Association (ARA) predicts that pre-Christmas spending this year will be in line with last year’s.

“Last year, Christmas spending was bolstered by a record freedom spending phenomenon with delayed overseas travel, whereas this year – shoppers are expected to be much more conservative with their budgets,” said ARA CEO Paul Zahra.

“This year we anticipate a bargain-driven Christmas shopper, who will actively seek out the best deals and look for value purchases.