Australians turn Boxing Day focus to essentials, safety

Australians are shifting their Boxing Day spending towards essentials and more deliberate purchases, as new research from PayPal points to caution, budgeting and online shopping shaping the year-end sales period.

The study of 1,000 adults found that 30% of Australians plan to use Boxing Day discounts to stock up on groceries and everyday items. The findings indicate that many households see the post-Christmas event as a way to manage ongoing cost-of-living pressures.

Boxing Day remains a key date in the retail calendar. PayPal reported that 38% of Australians intend to shop the sales this year.

Younger shoppers show the strongest interest. Almost half of Gen Z respondents, at 48%, and 46% of Millennials say they will look for Boxing Day deals. These groups continue to engage with the traditional sales event, even as November discount periods such as Black Friday expand.

Many consumers say they plan to moderate their behaviour. Nearly one in three respondents, at 31%, say they are taking a "buy better, not more" approach to sales this year. Almost a quarter, at 24%, say they are now more cautious about what they buy during major sales events than in the past.

PayPal said shoppers are reacting to persistent financial pressure.

"Australians are becoming far more intentional about how and when they spend, particularly as cost-of-living pressures continue," said Danielle Grant, Consumer Spokesperson at PayPal Australia.

Grant said the role of Boxing Day is changing within household budgets. "Boxing Day is no longer just about impulse purchases for many households, it's a chance to plan ahead, prioritise essentials and make smarter decisions with their money as they close out the year," said Grant.

Generational split

The research shows a clear divide between younger and older shoppers on planned spending levels.

Among Gen Z consumers, 30% plan to increase their spending during this sales season. The figure for Millennials is similar at 28%. In contrast, only 14% of Gen X respondents and 3% of Baby Boomers expect to spend more.

This difference suggests that younger Australians may be more willing to trade up or buy higher-value items during discount periods, even as many say they aim for more selective purchasing.

Self-focused spending

Australians are also looking inward with some of their Boxing Day budgets. Almost a fifth of respondents, at 19%, say they will use the sales as an opportunity to shop for themselves rather than for others.

Across the broader holiday sales season, fashion and accessories rank as the most popular product category, with 41% of respondents planning purchases in this area. Electronics and technology products follow at 35%. Home and kitchen items attract 33% and beauty and personal care products 32%.

Essentials remain a major focus. The research found that 30% of Australians plan to buy groceries or everyday items in the sales. PayPal said this reflects how shoppers are using discounts to secure lower prices and manage future household costs.

Online shift

Digital channels dominate planned Boxing Day and holiday sales activity. The survey shows that 82% of Australians expect to do at least some of their sale shopping online.

Almost 59% say they will conduct half or more of their sales shopping through online channels. Respondents cited several reasons for this preference.

Convenience ranked as the top benefit of online shopping during sales, mentioned by 45% of Australians. Better deals and discounts followed at 40%. Avoiding crowded stores appealed to 38%. Avoiding parking pressures influenced 32% of respondents.

Online browsing also allows shoppers to compare prices across retailers in real time. PayPal said this behaviour aligns with trends towards more deliberate and research-led spending decisions.

Fraud concerns

Despite the strong shift online, many Australians express concern about digital risks. More than half of respondents, at 55%, say they worry about scams, fake offers or fraudulent websites when shopping online in the holiday period.

The research suggests most shoppers plan to adjust their behaviour in response. A total of 81% say they intend to take steps they consider safer when buying online during the sales.

Among those measures, 55% say they will shop only on websites they trust. Some 52% plan to avoid unfamiliar links in emails, texts or social media messages. A further 46% say they will use secure payment options such as PayPal.

Grant said Australians are increasingly alert to fraud risks during busy sales peaks. "When people are shopping during busy sales periods, it's understandable to be cautious. Taking simple steps like sticking to sites you trust, being careful with links, and choosing secure ways to pay can make a real difference and help shoppers feel more confident online," said Grant.