Subdued mood

Almost one in three want to save on presents this year

More and more often, it is not the shopping trolley that is filled with gifts, but the parcel service that brings the online shopping into the home.

(Bild: Stavros - stock.adobe.com)

Three out of ten consumers want to spend less on Christmas presents this year, but only one in ten want to spend more. According to the Linz-based Institute for Retail, Sales and Marketing (IHaM ), the subdued consumer mood is reflected in the willingness to spend. And one in three people already shop online on Black Friday.

The current IHaM forecast (based on a large-scale consumer survey) assumes gift spending of around EUR 2.23 billion. Compared to the previous year (around €2.28 billion), this would correspond to a decrease in spending of -2% or around -€50 million. Nevertheless, there will be no or hardly any savings on gifts for children and partners this year. Christmas presents for relatives, friends and work colleagues, on the other hand, are where the savings are being made.

A third take advantage of Black Friday
Christmas presents are being bought earlier and more planned this year in order to make do with the comparatively smaller shopping budget. As a result, 29% of Austrians are already using the days surrounding Black Friday to buy gifts at discounted prices, which is significantly more than last year (18%). On the other hand, spontaneous impulse purchases - the actual domain of bricks-and-mortar retailers - are taking a back seat when it comes to Christmas shopping this year. This has resulted in a shift in gift spending from offline to online.

Christmas spending shifts to the internet
Although no more Austrians are buying Christmas presents online this year than last year, spending on online Christmas shopping will increase - in contrast to offline spending. 52% of consumers (aged 16-74) plan to order gifts online this year, compared to 53% last year. 34% use their smartphone for their online gift purchases.

Online gift spending will increase from around € 430 million in the previous year to a forecast of around € 460 million, but will not reach the high level of the coronavirus years despite a significant increase. However, more than half of online spending will flow to international online shops/platforms (Amazon, Temu, etc.).

Christmas shopping is shifting more online again this year. Online shopping will also increase on Black Friday. The record spending on Black Friday of around 490 million euros will nibble away at the actual Christmas business in the domestic retail sector"

IHaM-Institutsvorstand Univ.-Prof.Dr. Christoph Teller.

The summary
"The negative assessments of domestic retail managers for the fourth quarter and thus also for the Christmas business have already led us to expect what the current consumer survey now confirms. The persistently poor consumer sentiment is also dampening Austrians' willingness to spend on their Christmas purchases. Current shopping plans foresee a reduction in spending of minus 50 million euros compared to the previous year," says Dr. Ernst Gittenberger, summing up the latest analysis results from the Institute for Retail, Sales and Marketing (IHaM).