Aussies Set to Deck the Malls this Festive Season

Sydney – With lockdowns lifting just in time for a big month of sales, Aussies are set to get back instore and spare no expense on themselves and others this festive season, according to the latest consumer research from Citi Australia.

Following an extensive period of shutdown for many non-essential retailers, November promises to be a strong month for traditional retail, with nearly 40% of Australians surveyed saying they would be doing their festive shopping instore this year. 1 in 4 consumers also plan to spend more on themselves and others, wanting to spoil themselves and thank family and friends after a difficult year.

Head of Cards and Loans at Citi Australia, Choong Yu Lum, said the findings were good news for Australian retailers and the economy more broadly.

"It's great to see such strong consumer sentiment and appetite to get back into stores. It has been a tough few years for Australian retailers, but consumers are clearly signalling they are keen to get back to our shopping centres and make this Christmas extra special," Mr Lum said.

Of those surveyed, 45% plan to spend more than $300 on gifts for others, while 32% were planning to spend between $100 - $200 on gifts for themselves, citing they had saved more and deserved to indulge after a long lockdown period.

"Perhaps unsurprisingly, the top three categories for spend were groceries, liquor, and gifts, which tells us that Australians are planning to pull out all the stops to celebrate this Christmas and come together with family and friends. We have also seen an uptick in personal spending, with consumers wanting to treat themselves after this tumultuous period. This is a strong indicator for the economy more broadly, with 25% of Aussies telling us they plan to spend more than they did last year."

Bargain hunting on the rise

In addition to increased spending, Citi research also shows consumers are bringing forward their Christmas shopping to take advantage of strong online and instore sales in November. 1 in 2 consumers surveyed report they will spend more due to the sales, with under 40s particularly keen to grab a bargain, with 72% planning to spend big in November sales.

COVID-19 has also expedited this trend, with 40% of Aussies saying they are more likely to shop earlier and 30% saying they are placing higher importance on sales due to the impact of the pandemic.

"COVID-19 led to many Aussies becoming more mindful of their finances and spending habits, and we are seeing that consumers want to get more bang for their buck and will change their shopping habits to get the best deal," Mr Lum said.

"Shipping and postal delays are also causing Australians to be more mindful this year. 40% of our respondents said they were concerned about shipping delays and were bringing their spending forward because of this, with women and younger Australians more likely to be conscious of these issues."

Aussies want to be rewarded

With payments technology evolving, consumers spending on credit cards expect to be rewarded and for the card to add real value to their lives.

"With the economy set to get back into full swing, we were keen to understand how our customers, and Australians more broadly, wanted to use their credit card and be rewarded for doing so," Mr Lum said. "What they told us was that a cashback reward for their spend had great appeal, with more than 60% of those surveyed saying this would add real value, especially ahead of Christmas."

With strong consumer demand for cashback rewards, Citi is offering a 5% cashback (up to $100) when consumers spend $500 or more on eligible retail shopping on their Citi credit card between 24^th November – 1^st December, just in time for the biggest sales of the year. Primary cardholders can register for the offer via the Citi Mobile App until 20^th November.

"We hope this incentive will help support businesses as Australia reopens and also help our customers to kickstart their Christmas bargains," Mr Lum said. "More than 40% of our survey respondents said this offer would lead them to purchase more in November, and we have designed this cashback offer to be as quick and easy as possible to ensure our customers see real value."

To find out more about Citi's cashback program, visit the website here.