New research has found that Kiwis will be spending up large on Christmas in 2019 while Australians will be taking a more conservative approach to the Christmas budget. However, Kiwis are still focused on trying to lower their Christmas spending, and retailers have been warned to keep pricing strategies transparent.
A survey from Accenture New Zealand covering 1,500 Australians and New Zealanders has found that the average Kiwi will spend NZ$952 this Christmas, with Australians spending only NZ$726.
A difference of NZ$226 hasn’t had too much of an effect on where and how consumers will be spending their money in both countries.
Kiwis reported that 59 percent of Christmas shopping will be done in store with 41 percent online, whereas Australians said they would complete 66 percent in store and 34 percent online.
Accenture Interactive New Zealand managing director, Ben Morgan, says: “Despite the growing trend toward online shopping, bricks and mortar retail remains a critical channel for shoppers in New Zealand. We have seen this trend over the past five years, which we call ‘Physical Fights Back’ – where we see the divide between digital and physical experience reducing. “
Morgan said that retailers are now working towards a seamless experience across their physical and online stores in order to give consumers choice in how they shop.
Despite Kiwis spending more than Australians, New Zealanders are still trying to lower Christmas gift costs.
According to global comparison website Finder, 65 percent of New Zealanders are planning to spend less this Christmas with 33 percent of people setting a price limit with family and friends.
Other solutions to cutting costs include 12 percent of kiwis making gifts and 9 percent opting to have a secret Santa option so only one present is purchased.
Finder’s global editor-in-chief, Angus Kidman said, “The cost of Christmas presents can really pack a punch, especially if you’re buying for multiple people.
“There’s nothing worse than having to splash out on gifts for friends and relatives you hardly see. If you’re stressed about money this year, don’t feel obliged to play Santa.”
The Commerce Commission has released its top tips for consumers who are Christmas shopping.
The Commission wants retailers to be transparent about their Christmas sales and make sure they are following the pricing guidelines.
Commission chair Anna Rawlings said, “We want consumers to be confident that the price they pay is the price they should be paying this Christmas. For example, businesses need to ensure the price they charge at the till reflects the price displayed, and that all promotional pricing is accurate.”
In 2017 Bike Barn was fined $800,000 due to misleading discount pricing, since then the Commission has issued an open letter to retailers which offer information and help to avoid and illegal pricing systems as well as a tip sheet.