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Australians Seek Bargains to Stretch Christmas Budgets Amid Rising Costs
As the festive season approaches, Australians are preparing to spend more on Christmas gifts and festive feasts compared to previous years. However, despite larger budgets, many are still on the hunt for bargains to make the most of their holiday spending, according to new research by Pureprofile Limited (ASX: PPL).
Australians Seek Bargains to Stretch Christmas Budgets Amid Rising Costs
As the festive season approaches, Australians are preparing to spend more on Christmas gifts and festive feasts compared to previous years. However, despite larger budgets, many are still on the hunt for bargains to make the most of their holiday spending, according to new research by Pureprofile Limited (ASX: PPL).
The study reveals that the average Australian expects to spend $491 on gifts, up from $468 last year, and $506 on food and drinks, significantly higher than the $406 spent in 2024. This increase in spending comes as 78% of Australians adjust their Christmas budgets, up from 67% last year, to stretch their dollars further. Notably, 38% intend to spend less on gifts overall, a slight decrease from 41% in 2024, while 18% focus their gift-giving on children.
A significant driver of this budget-conscious approach is the growing popularity of Black Friday and Cyber Monday sales, with 55% of Australians planning to do their Christmas shopping during these events, up from 45% in 2024. Retailers looking to attract these bargain hunters should note that percentage-off discounts are the most appealing to Australians (48%), followed by free shipping offers (15%).
Interestingly, despite the convenience of online shopping, Australians are increasingly favouring brick-and-mortar stores, with 61% preferring in-store shopping compared to 59% last year. This shift indicates a desire for tangible shopping experiences, even as online shopping remains popular with 38% of consumers.
The 2025 Christmas Report by Pureprofile, now in its seventh year, is a comprehensive global study based on insights from over 4,600 panel members across Australia, New Zealand, the UK, the USA, and Singapore. The report highlights that Australians are more inclined to give gifts than receive them, reflecting a value-driven and cautious mindset. The majority plan to spend between $301 and $1,000 on gifts, with 15% expecting to spend over $1,000, a figure that skews towards those aged 45–54.
This year, Australians are also changing their payment methods, with debit card usage rising to 56% from 50% last year, while credit card usage has fallen to 40% from 47%. Martin Filz, CEO of Pureprofile, commented on this trend, stating, "Australians are heading into Christmas spending with a blend of practicality and cautious optimism. A shift from credit card to debit card use signals a strong intent to celebrate within tighter financial control."
Gift cards and money remain the most desired gifts among Australians, though slightly less so than last year, with 43% preferring gift cards and 36% opting for money. Meanwhile, clothing and shoes have grown in popularity, with 41% of Australians favouring them, particularly among 18–24-year-olds. High-value gifts like technology and jewellery are also on the rise, reflecting a shift in consumer preferences.
In terms of festive feasting, three in five Australians plan to spend under $500 on food and drinks, with 21% opting for budget-friendly options. A third of Australians hope to receive food, confectionery, and drinks as gifts this year, up from 30% last year.
Travel is also high on the agenda, with nearly half of Australians intending to travel during the festive season. Of these, 25% plan to travel locally, 19% domestically, and 11% overseas. Younger Australians, particularly those aged 18–24, show a significant increase in interstate travel intentions.
Looking ahead to the new year, over half of Australians (56%) aim to save more money, reflecting ongoing cost-of-living pressures. Health and fitness goals (42%), travelling more (34%), and spending time with family (30%) are also top priorities. This blend of prudence and fulfilment is evident in spending plans, with travel, fashion, and household items ranking strongly.
As Australians navigate the festive season, the balance between celebration and financial prudence is clear. With rising costs and a cautious economic outlook, the focus remains on stretching budgets while maintaining traditional holiday cheer.
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