This time next week Christmas will be a happy memory (we hope) and it’s on to the beach. Enjoy it while you can, says QUT consumer expert Dr Gary Mortimer because many people will have the shock of the credit card bill in the New Year.
“There will definitely be impulsive, unplanned purchasing this week coming, with many shoppers ‘tapping and going’ and worrying about the credit card next month,” Dr Mortimer said.
“Shoppers are more willing to pay for goods when using credit cards, and purchase more when paying with a debit or credit card than with actual cash.
“This phenomenon is related to transaction decoupling, the separation between when a product is purchased and when it is actually paid for.
“The access to easy credit, interest free periods and temporary credit limit increases has now become the norm at Christmas.
“Shoppers today want immediate gratification and the thought of having to save and sacrifice all year is not an attractive option any longer – hence the decline in layby.”
Dr Mortimer said that despite our best intentions, many of us still leave Christmas shopping to the last minute for a variety of reasons.
“We tend to leave the last of our gift shopping till the final week; most businesses are shutting down for Christmas and workers on leave have time to hit the stores.
“And then there are the savvy shoppers who have the fortitude to wait and hunt for bargains. They know that this week, retailers are balancing their books and starting to discount to capture those key sales before they close the doors on Christmas Eve.”
He said the Retail Council of Australia had estimated that 36 per cent of shoppers would buy gift cards this Christmas.
“Gift cards have been growing in popularity for some time now. In 2012, only about 18 per cent of shoppers purchased cards.
“Gift cards are convenient and allow shoppers to choose their own gifts. You can also just pop them in an envelope and post them anywhere.
“Gift cards have also evolved to capture entertainment, experiences, dining, movies and travel. It’s not just stores that have benefited from this growth.
“The figures this year appear pleasing, with retailers and retail associations remaining optimistic. Eighty per cent of retailers surveyed by Deloitte indicated they expected sales this year to exceed last year.
“The weakened Australian dollar, hovering around .70 US cents will also be drawing people into stores this Christmas and offline.
“A $50 gift purchased overseas a few years ago, would now cost shoppers nearly $70, for that same product.”
Media contact: Niki Widdowson, QUT Media, 07 3138 2999 or n.widdowson@qut.edu.au.
After Hours: Rose Trapnell, 0407 585 901 or media@qut.edu.au
