Media Release

More South Australian households are intending to spend more in the lead-up to Christmas this year, with levels returning to those seen before COVID-19.

BankSA’s annual Christmas Spending Intentions research has revealed that 75 per cent intend to spend more or the same as they did in 2020, compared with 67 per cent in 2020.

Spending optimism is being driven by 18 to 34-year-olds and those aged over 55, where intentions are at their highest since 2017. However, Christmas spending intentions have improved across all segments since last year.

While the median intended spend is $500, nearly a third of households estimate they will spend between $500-$1,000 – up 5 per cent compared to last year. People intending to spend between $301 and $500 also increased by 5 per cent.

There was an increase in people planning to use cash/savings (90 per cent, up 4 per cent) and buy now pay later platforms (16 per cent, up 5 per cent) to fund their Christmas shopping. Another 37 per cent intend to use credit cards, down 10 per cent compared to last year.

BankSA State General Manager, Consumer, Ben Owen, said the early signs were positive for retailers as South Australians plan to spend more and support local businesses.

“Nearly 60 per cent of South Australians prefer to buy gifts and products made locally this year, with the majority citing the impacts of COVID-19 on local businesses as the reason,” said Mr Owen.

“Our research shows that shoppers are also looking after their budgets and will take cost into consideration and consider alternate sources if better value for money.

“While South Australians want to support local wherever they can after a tough year, they are also focused on keeping their household budgets healthy.”

South Australians are planning to make 57 per cent of their Christmas purchases in traditional ‘bricks and mortar’ stores and 31 per cent online, with the remainder undecided.

“This indicates that foot traffic will be alive and well in the city and suburbs over the coming weeks,” said Mr Owen.

“Even though online shopping is growing year-on-year, and browsing online has increased, people are still planning on getting out and about to our local stores.”

In a positive movement, the number of households intending to spend less this Christmas decreased 6 per cent. The contributing factors included rising cost of living (83 per cent), general financial pressures (71 per cent), changes in personal circumstances (64 per cent), a change in income circumstances (58 per cent) and concerns about the global economy.

“There is a significant reduction in the impact of COVID-19 being felt by consumers this year compared with last year, particularly around global concerns (46 per cent, down from 61 per cent last year). We hope this continues as the national economy gains momentum and relaxing of border restrictions continues,” said Mr Owen.

Despite the focus on shopping over the next three weeks, the things that South Australians are most looking forward to is eating, drinking and celebrating (83 per cent), closely followed by spending time with family and friends (82 per cent), having a sense of shared celebration (74 per cent), and the giving and receiving of gifts (71 per cent).

More than 40 per cent of South Australians say they find Christmas shopping time consuming and stressful, and a third of people set out for the shops not knowing what to buy. With this in mind, and a focus on backing SA businesses, BankSA has published the Celebrate SA – BackSA Gift Guide for the third consecutive year, featuring more than 120 local retailers and almost 350 gift ideas.

“We’re putting our weight behind local businesses as part of our strategy to back SA and stimulate the local economy. We hope this will help our state’s COVID-19 recovery and encourage South Australians to spend on local products and experiences this Christmas,” said Mr Owen.

This year’s Celebrate SA - BackSA Gift Guide is free at all Foodland stores or banksa.com.au