The average Australian is expected to spend an extra $1,079 this coming festive season, according to new research from CommBank.
The research forecasts spending to peak at $17.8 billion during the upcoming holiday season, from 1 December 2014 to 6 January 2015.
“While consumers have been sending mixed signals on their spending intent in recent weeks, our research shows consumers are planning to open their wallets and spend big in the lead up to, and directly after, Christmas Day,” said Diana Mousina, Economist, Commonwealth Bank.
1,000 Australians were surveyed for the CommBank forecast, which predicts gifts and holiday trips will account for most of the spending. $7.6 billion is expected to go on gifting, while $4.6 billion will go on festive vacations.
“Interestingly, while consumers expected to have completed the bulk of their Christmas shopping by today, our research shows they are still planning to spend an additional $1,079 and the bulk of that will go on gifts,” Ms Mousina said.
“Other areas we’re expecting consumers to spend include entertaining friends and family, and eating and drinking in and out of the home.”
Australians are expected to fork out $2.6 billion on Boxing Day sales, yet the peak in the retail sector is predicted to land 13 days earlier. 3.2 million shoppers are expected to hit stores on Saturday 13 December 2014.
Six million consumers said they plan to do their gift shopping online on 1 December 2014, but the majority of Australians (72 per cent) will purchase gifts at bricks and mortar stores.
NSW is expected to lead in overall spending over the holiday season, with a $7.5 billion total predicted. Victoria came next with a total forecast at $4.4 billion, followed by Queensland with $2.6 billion, Western Australia with $1.7 billion and South Australia with $1.2 billion.
