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Australians to use over half of Christmas spend on groceries, Accenture finds

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Australians are expected to spend A$686 each on average this Christmas with over half (A$351) of that spent on groceries, according to Accenture research.

The study of 1000 Australians found that only a fifth (23 per cent) of shoppers are optimistic about their finances in the lead up to Christmas, with grocery costs, disposable income and utility costs all influencing their seasonal spend.

High-end retailers will entice 26 per cent of shoppers for their grocery shopping shopping, with 35 per cent planning to buy premium brands instead of private label.

A third of consumers (34 per cent) will shop online this Christmas, with seven in 10 shoppers (66 per cent) planning to research on Amazon before checking out other online stores.

Over a quarter of shoppers (29 per cent) expressed the need for fast and free delivery when shopping online, but 61 per cent said they would be tempted in-store to pick-up the delivery if they received bonus loyalty points, a discount voucher (51 per cent) or free gift (50 per cent).

While only one in 10 consumers will shop for groceries online this Christmas, respondents said more competitive prices and better offers would entice to make the switch to online.

Being able to see, feel and smell the physical product (48 per cent) and the in-store shopping experience (48 per cent) are the primary reasons why shoppers prefer bricks and mortar stores.

“Despite the growing trend toward online shopping, and the need to provide consumers with a strong online proposition, bricks and mortar retail remains a critical channel for shoppers in Australia, especially over the holiday season,” said Glenn Heppell, products lead for Accenture Australia and New Zealand.

“With two thirds of consumers planning to spend-instore, retailers need to carefully plan their strategy for superior customer service as well as labour, assortment and allocation of inventory to ensure they are winning the attention of customers at this busy time of year.”

Heppell also pointed to a growing trend of consumers buying brands that reflect their values and promote sustainability.

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