Originally published: AdNews, 27 October 2026
While we wait to see if the RBA will increase or hold the cash rate next month, the cost-of-living crisis is already dampening the Christmas cheer for many Aussies.
According to Pureprofile’s 2026 Christmas Report, cost-of-living pressures are directly affecting festive season sentiment, with 79 per cent of Aussies adjusting their spending accordingly.
Thirty-five per cent plan to spend less on gifts and 30 per cent are choosing more budget-friendly food and drink options (up from 21 per cent in 2025).
Pureprofile CEO Martin Filz says consumers are increasingly focused on genuine value for money and budget-friendly options as they navigate the festive season and look ahead to 2027.
“Brands and retailers that enter 2027 seeking to meet people where they are will be tapping into the dominant mood over the vital Christmas retail period,” he notes.
“Given the ongoing cost-of-living crisis facing many Australians, this means offering comfort, reassurance and affordable options.”
Black Friday is becoming an essential part of helping Australian consumers manage the festive budget. Fifty-eight per cent of Australians plan to leverage sales to bridge the Christmas budget gap and this increases to 76 per cent for families with children aged 0 to 12, a key Black Friday audience.
“As Black Friday becomes the major sales event of the year, Australians are increasingly experiencing both choice fatigue and the fear of missing out. Retailers can win trust by showing they understand the pressure shoppers are under and helping them stay in control. Clear and honest discounts, easy comparisons, price-match promises and flexible returns are keys to seeing carts fulfilled,” Filz adds.
Download the Australia & New Zealand Christmas & Black Friday Report 2026 here.
