Mike speaks with Barry Urquhart, Consumer Behaviour Analyst and Managing Director of Marketing Focus, about why Christmas hype failed to translate into strong spending.

Despite busy shops and strong foot traffic, consumers spent cautiously over Christmas, weighed down by cost-of-living pressures and rising personal debt. Few Australians set clear budgets, and most tightened spending in general rather than planning carefully. 

Shoppers favoured cheaper and house-brand items, leading to modest unit sales but lower overall revenue. Online shopping remained popular for research and price comparison, while spending on experiences such as concerts and sporting events continued.

With government subsidies ending and interest-rate relief uncertain, immediate cash flow—not future expectations—drove purchasing decisions. Barry warns businesses to be cautious with consumer research, noting many shoppers overstate spending intentions, leading to misleading conclusions.