According to the latest insights from Circana, data suggests consumers are looking to hold onto positivity.
Circana, fresh from delivering the 2025 outlook at its State of the Industry event, reports the improving economic outlook next year will influence consumer spending during the upcoming holiday season.
‘Retail therapy’ isn’t off the cards for consumers as they seek affordable escapism.
This provides an opportunity for retailers and brands to creatively engage with consumers over the key holiday selling period. Finding ways to elevate at-home experiences, engaging consumers through interactive marketing campaigns and providing special offers or discounts, will be important to unlocking incremental spend.
In Australia, two-thirds of people are buying items on sale more frequently than they have before – highlighting a primary way for retailers and brands to engage.
Circana Head of Analytics, Insights and Media APAC Alistair Leathwood.
Circana Head of Analytics, Insights and Media APAC Alistair Leathwood shares more about consumers’ quest for value and escapism.
“The cost of living squeeze has forced Australians to become more considered, savvy and promotionally reliant when it comes to shopping in general. With this backdrop, retail events such as Black Friday and Cyber Monday are growing in popularity, despite not being linked to traditional holidays in Australia.
“With growing positive sentiment around the economy, Australians are expected to increase their spend over the November-December period. We also expect a growing share of holiday shopping to be done online. We’ve already seen e-commerce sales growing this year at a double-digit rate and accounting for more than half of the unit sales growth in Circana-measured-sales.
“At Circana, we’re emphasising the need to strike a balance with marketing and promotion plans both in-store and online. It underpins successful omnichannel category management.
“In-store remains the leading way Circana shopper panellists discover new products. This is especially important at a time when innovation is needed to simulate demand.
“Shoppers have high expectations from the in-store environment, and stores need to continually innovate and invest to meet these,” Mr Leathwood said.
Consumer behaviour has shifted dramatically over the past few years and retailers have been called to adapt and pivot to capture the changing focus of consumers. Recent data has revealed some key priorities and behaviours for consumers, including:
- Indulging at home – Insperiences are the latest craze
- Treat culture – over one-third of industry growth derives from these products (soft drink, confectionery, etc.)
- Cooking from scratch or easy preparation food at-home
- Quick-commerce / on-demand services.
In order to stay ahead of the curve of consumer behaviour and trends, brands need to source reliable data about where consumers are spending their money. This data provides invaluable insight into who the audience with the most propensity to buy their products is – maximising marketing and advertising spend.
