The festive season is always important for retailers, and this year, after on-again, off-again lockdowns and lingering uncertainty, it’s arguably more critical than ever.
That’s why Afterpay surveyed 1770 Australians about how they plan to shop this season, and packaged the results into a report featuring actionable insights for merchants.
Afterpay’s Festive Forecast reveals a few key trends, from the rise of gift cards to growing customer unease over delivery times and returns.
The good news? The festive season is shaping up well. “Consumer sentiment is upbeat,” says Paul Zahra, CEO of the Australian Retailers Association.
“People are excited to be back out shopping. We’re forecasting Australians will spend nearly $59 billion in the pre-Christmas sales period, which is in line with last year’s spend, but well up on pre-pandemic conditions.”
“Consumer sentiment is upbeat. People are excited to be back out shopping”
Here are the insights the report delivered, and tips to help merchants make the most out of the festive season.
Christmas is (literally) coming early
Forget last-minute shopping. This year, many shoppers are aware of supply chain disruptions, and some are worried that lockdowns could still pose a threat to shopping plans. As a result, more than half (54 per cent) of Australians will start their Christmas shopping in November.
This means retailers need to start considering inventory, supply chains and fulfilment plans now.
Australians are excited
Afterpay’s Festive Forecast found that most Australians consumers (54 per cent) are excited about the holiday season. After a long and tumultuous year, more than half of Australians are looking forward to spending time with family and friends, while one in five is simply keen to put COVID-19 behind them.
Gen Z and Millennials are especially excited
Younger Australians are particularly looking forward to celebrating, and one in three are planning to spend more this year compared to 2020. For retailers, this presents a clear opportunity for incremental revenue.
Aussies see sales differently
Afterpay’s Festive Forecast uncovered a generational divide in the way Australians view sales. More than half of Gen Z and Millennials plan to take advantage of sales events like Cyber Weekend, while only four per cent of Baby Boomers are factoring them into their plans.
For retailers investing in Cyber Weekend marketing, it will be important to consider the age of shoppers; if they’re older consumers, it may be worth considering campaigns to educate them on sales events.
The rise of the gift card
Don’t have a gift card offering? Now is the time for retailers to start thinking about one. Afterpay’s Festive Forecast found that 84 per cent of Australians would like to receive a gift card, and 47 per cent are considering giving one.
Aside from gift cards, sustainable and sentimental presents also look set to be popular this year.
Where shoppers are spending
While it’s true that Gen Z and Millennial shoppers are more likely to spend online, consumers of all generations will be shopping in-store – especially as Christmas Day draws closer.
This is partly because shoppers are concerned about delays or feel frustrated by having to return products bought online. The lesson for retailers? Differentiate yourself and allay customer fears by clearly communicating delivery times and offering options like click-and-collect, if possible. It’s also important to ensure that customers have all the information they need – including size and fit – to feel confident about purchasing online.
To read the report - and tips - in full download Afterpay's Festive Forecast here.
Source: Afterpay Festive Forecast Report 2022
