Retail Holiday Report 2025 (Deloitte)

Summary

• 84% of retailers expect sales growth from last season, and 33% of shoppers plan to spend more than they did last year.p.3
• Only 15% of consumers feel financially confident and ready to spend freely, and 57% of shoppers plan to make at least 20% of their holiday purchases online.p.4
• Most retailers (84%) expect sales growth compared with only 51% in 2024, and 33% of consumers expect to spend more, up from 24% in 2024.p.9
• For the first time, retailers expect to generate 50% of their revenue through Click Frenzy, Black Friday and Cyber Monday.p.11
• In 2024, 6.4 million households shopped online during Black Friday sales in Australia, spending $2.2 billion.p.14

Key insights

1. Retail generates $430 billion annually, accounting for 18% of Australia's GDP.p.6
2. Consumers plan to spend 30% more on experiences than in 2024, with gift spending up 4% and non-gift spending up 9%.p.12
3. 34% of consumers say they are likely to switch brands for a better deal, rising to 42% for those under 35.p.11
4. High prices and cost of living concerns are the top factors limiting spending, cited by 36% of respondents.p.16
5. 41% of consumers consider ESG practices important in where they shop, but only 6% are willing to pay over 10% extra.p.17
6. 43% of consumers actively consider Amazon during their purchasing journey, while 50% of retailers are concerned about Amazon.p.23
7. 95% of retailers now report some level of digital sales, up from 80% last year.p.23
8. 41% of retailers are already mainstreaming AI across the business.p.28