Extraordinary shopping trend shows how the cost of living crisis has ruined Christmas for struggling Aussies
The cost of living crisis is now so bad that Australian families are postponing Christmas until after the Boxing Day sales.
Consumer expert Graham Hughes, director of the Business Lab at Griffith University in Brisbane, said the surge in mortgage repayments meant some struggling families would be opening their gifts on December 26.
“Certainly, I’ve actually heard quite a few consumers who are catching up and celebrating Christmas on Boxing Day – jumping out early, planning ahead to buy early Boxing Day,” he told The Washington News Australia.
Others have a second Christmas where they give out fewer presents on Christmas Day and instead open more presents on Boxing Day.
“This is the second Christmas for many families after juggling the Christmas holiday,” he said.
The cost of living crisis is now so bad that Australian families are postponing Christmas until after the Boxing Day sales.
The Australian Retailers Association and Roy Morgan Research predict consumers will spend $23.9 billion in Boxing Day sales this year, up $400 million or 1.7 per cent on 2022.
But Mr Hughes said thrifty Australians who celebrate Christmas on December 25 were more likely to buy their gifts in the Black Friday sales in November.
He added that discounts of at least 30 per cent or more were needed to encourage customers to spend more on Boxing Day compared to last year, especially on items such as electrical appliances.
“To really get consumers moving at the moment there needs to be at least 20, if not 30 or more,” Mr Hughes said.
The cost of living crisis has also led to increased demand for things like home security as tough times lead to a rise in crime in parts of north Queensland.
“We’ve even seen some interest in home security, especially youth crime and things like that,” he said.
Consumer expert Graham Hughes, director of the Business Lab at Griffith University in Brisbane, said the surge in mortgage repayments meant some struggling families would be opening their gifts on December 26.
Others are having a second Christmas where they give out fewer presents on Christmas Day and instead open more presents on Boxing Day (pictured – stock image).
In November, the Reserve Bank raised interest rates for the 13th time in 18 months, taking the rate to a 12-year high of 4.35 percent.
Monthly payments on variable mortgages have risen 68 percent since May 2022, when banks offered variable mortgage rates starting in the low teens.
Inflation fell to 4.9 percent in October, a significant decline from the 32-year high annual rate of 7.8 percent at the end of 2022.
However, according to the Australian Bureau of Statistics, electricity bills rose 10 percent over the year and petrol prices rose 8.6 percent.
This resulted in savings on Christmas gifts, although spending on clothing actually fell 1.7 percent for the year.
“There are fewer presents under the tree this year,” Mr Hughes said.