Deloitte Study: Inflation Forces Austrians to Save on Christmas Gifts

Around 500 Austrians were surveyed as part of the Deloitte survey. The result: Nearly half of them say their anticipation for Christmas shopping is affected by the high prices. Six out of ten state that inflation directly influences their spending. The retail sector, in particular, feels the restraint – 34 percent of respondents want to reduce their budget here.

“Many retailers are trying to counteract with discounts and promotions. However, this squeezes margins and makes it difficult for smaller businesses to survive,” explains Orsolya Hegedüs, partner at Deloitte Austria.

Cost-Cutting Measures in Multiple Areas of Life

The gastronomy industry is also affected by the cost-cutting measures: 31 percent of consumers plan to spend less here than last year. When it comes to gifts themselves, 28 percent want to save. The main reasons cited by respondents are both the persistently high inflation (48%) and their personal financial situation (48%).

According to Harald Breit, CEO of Deloitte Austria, many households already have to build up reserves throughout the year to afford the Christmas season: “Nearly half of the respondents save specifically for Christmas. For more than a quarter, this is a direct consequence of inflation.” Planned Christmas vacations are also being canceled for many – mainly due to the increased prices in winter tourism.

Online Retail Benefits from Price Awareness

The average gift budget this year is between 100 and 500 euros. Particularly popular are vouchers (30%), cash gifts (27%), and shared experiences (26%). The purchasing decision is predominantly determined by price (56%), while sustainability (12%) and regionality (11%) are increasingly losing importance.

Almost half (46%) of respondents buy their gifts online, while brick-and-mortar retail accounts for 41 percent. "The increased price awareness especially benefits cheaper online providers," says Hegedüs. To counteract this, she recommends that retailers focus on personal advice and a stronger shopping experience on site.

Despite High Inflation: Willingness to Donate Remains Stable

Despite all the savings measures, many Austrians show solidarity. 41 percent plan to donate part of their Christmas budget – a figure that matches last year. The main beneficiaries are children's aid organizations (38%), social projects in Austria (31%), and animal protection initiatives (29%).

"It is remarkable that many continue to maintain their willingness to donate despite tight budgets," says Breit. "However, it also shows: When households save, it slows economic growth. An economic turnaround is urgently needed to stop this downward spiral."

(Ed.)

This article has been automatically translated, read the original article here.