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Consumers savvier with their Christmas gift spending: Deloitte/ARA survey

24 November 2008: Consumers will be savvier and more price conscious with their 2008 Christmas gifts spending, according to the Deloitte/Australian Retailers Association (ARA) 2008 Christmas retail survey.

The national analysis of the proposed 2008 Christmas spending of 933 consumers (mostly aged between 18 and 40) revealed that almost a fifth of respondents will purchase between 10% to 40% of their presents after Christmas Day to benefit from the post-Christmas sales.

Almost two thirds of respondents (63%) said they were going to purchase the same amount of gifts this year, but will be more careful with the type and price of the items they purchase.

According to the survey:

• more than half (56.8%) plan to start their Christmas shopping in December
• November remains a popular month for Christmas shopping, with almost a quarter starting this month
• over a quarter leave their Christmas shopping to the last minute, making their first trip the week before Christmas
• just over half (55.4%) said they were going to spend the same amount of money on Christmas gifts this year, compared with 61% in 2007
• half (50.5%) said they intend to buy most of their Christmas presents from suburban shopping centres, compared with 35.6% from the CBD
• over half (57.9%) said that ‘research and compare products' are the most important reasons they will use the internet to help them with their Christmas shopping.

Katrina Doney, Deloitte director and retail expert, said the results highlight that consumers are short of time for early Christmas shopping, but are still spending this year.

"Consumers are likely to be savvier this year, and will be doing research on the internet to make sure they get the best value for money," Ms Doney said.

"They will take note of retailers' price promotions, quality of products and complimentary gifts when making purchasing decisions this Christmas. They will be making sure they get value for money in the current economic climate".

ARA Executive Director Richard Evans said the Deloitte/ARA 2008 Christmas retail survey indicated that consumers have cash with nearly 68% of respondents planning to spend the same or more than they did last year.

"The survey shows consumers who may not necessarily be recipients of the Rudd Government's stimulus package are still planning to enjoy the gift-giving tradition of Christmas responsibly - this is good news for the economy. Retailers are optimistic about solid sales during the holiday season, although growth may not be as significant as last year's decade-strong Christmas trade.

"Savvy consumers who plan to wait for the post-Christmas sales should find an excuse to get their shopping done early, with many retailers offering generous pre-Christmas sales this year," Mr Evans said.

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For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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