Online v in-person shopping this Christmas: Why bricks-and-mortar stores still matter
Australia’s retail sector is gearing up for one of its strongest finishes in years, and while online continues to grow, the country remains an in-store nation come Christmas time. Deloitte’s 2025 Retail Holiday Report shows that 71% of Australians still prefer to shop in person, even as digital sales strengthen and global marketplaces compete aggressively for consumer dollars.
David Jones is preparing for one of its biggest Christmas seasons in recent memory, says chief retail officer Kate Bergin.
“The lead-up to Christmas is one of the most important moments for in-person shopping at David Jones, and we’re expecting strong foot traffic across our stores this year,” she says.
“Customers are looking for quality gifts, festive inspiration, and the ease of finding everything in one place.”
The retailer has hired over 1300 Christmas casuals to support demand, along with extended trading hours, complimentary click-and-collect services, and in-store gift wrapping.
“At this time of year, customers are buying more across gifting, home, beauty and fashion, with many choosing to shop in person so they can compare products, receive advice from our team members, and walk away with the perfect gift on the spot,” Bergin says.
What in-person retailers offer that online can’t is the Christmas spirit. The sensory experience shoppers enjoy includes decorations, music, displays and the simple pleasure of discovering the right gift in real time. For many Australians, these moments are part of the ritual of the season.
The data serves as a reminder that the retail landscape isn’t shifting from physical to digital, but rather toward a harmonised shopping future where shops remain the heartbeat of experience-driven spending while online is a quick and convenient alternative.
A strong spending surge for Q4
Sam Ryan from Colliers Research says retailers should prepare for an uplift over the peak sales window.
“Retailers should prepare for a strong holiday spending surge, with major sales events already kicking off,” he says.
“Online spending accounts for just 12.7 per cent of retail trade, significantly lower than other major economies. This underpins Australia’s enduring preference for experience-driven, in-store shopping, creating a truly harmonised omnichannel retail environment.”
The Australian Bureau of Statistics predicts that the retail outlook for the remainder of the year is set for a strong uptick, with major sales from Black Friday and the Christmas and Boxing Day period set to give it a significant boost in sales before the year comes to an end.
“Historically, Q4 spending has averaged a 3 per cent increase over the past three years compared to the other quarters,” Ryan says. “Based on this trend, approximately $116 billion is projected to be spent during Q4, which is around 8 per cent higher than the three-year average.
“As Australia’s economy strengthens, retail is benefiting from strong tailwinds that are expected to drive robust performance and deliver income growth for landlords through Q4 and into 2026.”
Online gaining momentum
Deloitte’s national consumer survey shows online retail is rising again, particularly as shoppers look for value and convenience. Over half of consumers (57 per cent) plan to make at least 20 per cent of their holiday purchases online this year, with younger Australians and high-income earners the most digitally active.
This demonstrates that online isn’t replacing stores, but rather Australians are moving fluidly between channels. They browse online and on their mobiles, test or collect in-store, return in person, and lean on retailers that offer seamless experiences across all touch points.
Online growth is also being accelerated by global platforms, with marketplaces like Amazon continuing to gain traction among savvy consumers drawn by low prices and fast delivery. However, despite this competition, Deloitte’s data shows that in-store remains the preferred primary shopping channel, demonstrating the resilience of physical retail and the importance of retail operators investing in the in-store experience.
