Halloween season is upon us, but if you’re out shopping for costumes and spooky décor, don’t be surprised to find the aisles already filled with Christmas items. Traditionally, retailers keep Halloween merchandise until the end of October, shifting to full holiday mode in November. However, this year, Australian retailers are bringing Christmas forward as early as October, leaving some consumers puzzled. Major stores like Myer, David Jones, and Kmart have already launched their Christmas campaigns, responding to shifts in consumer buying behavior.
The Ongoing Cost of Living Crisis
Australians continue to face significant financial pressure, with rising prices, volatile inflation, and stagnant interest rates affecting household budgets. As a result, consumers have become increasingly cautious about their spending. In response, 2023 saw retailers start their seasonal campaigns earlier and extend sales periods, giving shoppers more time to take advantage of discounts.
With the cost of living challenges persisting, the upcoming holiday season is shaping up to be highly competitive, as shoppers seek out the best deals. Deloitte’s Retail Holiday Report reveals that Australian consumers plan to reduce their holiday spending by 20%. Retailers are moving up their Christmas campaigns to capture a share of the limited consumer budget, as the holiday period remains a critical trading season that can make or break annual sales for many businesses.
Key insights from the report include:
- 51% of retailers expect sales growth this holiday season.
- 40% of retailers anticipate that customers will avoid paying full price.
- 76% of shoppers plan to reduce their overall Christmas spending.
- 95% of consumers prioritize finding the best deals.
- 32% of shoppers will not make a purchase without a discount.
Holiday Shopping Intentions
As the holiday season nears, despite ongoing economic challenges, consumers are becoming more strategic with their spending. Last year, Australians spent nearly AU$9 billion during the four-day Black Friday and Cyber Monday (BFCM) event and AU$35.1 billion in December—just a modest 0.8% increase from the previous year. With discretionary spending under pressure, the outlook for this year’s retail season remains uncertain.
According to CPM Australia, holiday shoppers are evolving—they’re starting earlier and spending more wisely. Their Holiday Shopping Intentions research highlights key trends for 2024:
Promotions and discounts will drive shopping behavior
Price sensitivity remains high, with 70% of shoppers citing sales and promotions as key factors in their holiday purchases. In addition to seeking bargains, consumers will be influenced by product reviews, shipping and delivery options, loyalty programs, return policies, and flexible payment methods.
Holiday shopping will be completed earlier
Shopping timelines have shifted, with most consumers preferring to complete their holiday purchases in November, rather than waiting until December. By the end of November, 73% of shoppers are expected to have finished their holiday shopping, largely due to major events like Black Friday and Cyber Monday. December shopping, by contrast, has seen a 34% drop between 2016 and 2023, as consumers increasingly rely on early-season deals like Cyber Weekend, Amazon Prime Day, and Afterpay Day.
Shoppers favor an omnichannel approach
A hybrid approach to shopping—combining both in-store and online experiences—is popular among 89% of shoppers this year. Online marketplaces like Amazon, eBay, and the ICONIC are preferred for their wide selection, price comparison tools, and 24/7 accessibility. Meanwhile, in-store shopping appeals to consumers who value seeing and touching products, drawing inspiration from store displays, and avoiding shipping costs. Retailers can capitalize on these preferences by offering seamless, integrated experiences across both channels.
Big-ticket items will dominate spending
Despite tighter budgets, holiday shoppers are likely to splurge on higher-priced items like electronics, furniture, and homewares, as pre-holiday sales often offer better deals on these products.
Black Friday overtakes Boxing Day
New research from Future Publishing Australia reveals that Black Friday has surpassed Boxing Day as the top sales event in Australia. Over 54% of shoppers believe that the deals during Black Friday and Cyber Monday are superior, reflecting the growing trend toward earlier holiday shopping.
Spending Trends Across Key Dates
In 2023, Partnerize data revealed that during the peak shopping season in the APAC region, October accounted for 21% of total retail spend. Notably, there was a significant 43% surge in spending between the Sunday before Thanksgiving (November 25) and Cyber Monday through to December 19. However, December saw a sharp decline, with spend slowing to just 13%. This pattern was also reflected in Australia, where November achieved record sales driven by Black Friday and Cyber Monday events.
Looking ahead to 2024, similar trends are anticipated, with a projected 2% increase in pre-Thanksgiving spending, particularly in October. November will remain the dominant month for retail activity, continuing to capture the highest daily spend. December is likely to experience a similar slowdown, though early shopping behaviors could shift some spending forward, offering brands the opportunity to engage consumers much earlier in the holiday season.
How Should Brands Prepare?
- Get Ahead of Early Holiday Shoppers
With holiday campaigns launching as early as October and November shopping becoming more prominent, brands must remain agile and fine-tune their holiday marketing plans now. They should align with market trends to meet the expectations of both early-bird shoppers and those who shop during peak sales periods. - Leverage Added Value for Price-Sensitive Consumers
In a highly competitive season, brands should avoid pushing prices to the point of eroding profitability. Instead, they can offer added value, such as extended layaway periods, free shipping, in-store pickup, and flexible payment options to attract budget-conscious customers without sacrificing margins. - Monitor Key Metrics
Keeping a close eye on sales data is crucial. By tracking metrics like conversion rates, return on ad spend (ROAS), and new-to-file customer rates early on, brands can shift resources toward October and November if they see strong early performance, optimizing their impact during peak periods. - Audit Loyalty Partner Performance
Loyalty partners are increasingly driving results during critical peak days. Regular audits should be conducted to ensure that cashback offers remain competitive. In APAC last year, loyalty partners significantly boosted brand discovery, making this a key area for capturing consumer attention and driving sales. - Be Ready to Pivot
Flexibility is essential. If certain partner categories underperform, or if unexpected success arises in others, brands must quickly adjust strategies. Rewarding high-performing partners with increased commissions, scaling back on underperformers, and focusing on mid-tier partners—often an untapped resource—can make the difference between an average season and an outstanding one. - Partner with Buy Now, Pay Later (BNPL) Providers
Offering BNPL options gives consumers more purchasing power by allowing them to spread payments over time, which can encourage larger purchases and reduce credit strain. (Tip: Partnerize’s Discover platform can help brands easily find and work with BNPL partners.) - Tailor Your Promotional Calendar
With consumer buying power uncertain, brands should develop a promotional calendar that showcases their most compelling offers during key shopping holidays. This calendar must remain flexible, allowing brands to adjust quickly to economic shifts that could impact consumer sentiment and spending.
To learn more about how Partnerize supports marketers during the holiday season and beyond, check out our Holiday Shopping Hub or contact us here.
