Welcome back to Industry Shifters.

Today we are exploring the cheery world of Christmas stores.

Will subscriptions services revolutionise this retail sector?

Let’s find out!

Brought to you by Dead Pig Publishing

As an investor, you’ll spend at least 700 hours of your life looking at your portfolio.

Spend 4 learning how to do it well.

• Permanently change how you view investing and stock portfolios, and learn how to approach the stock market with true confidence.

• Learn how investment professionals build a portfolio, understand its direction, and evaluate how it has performed.

Check out now!

Christmas Store Subscription Services

In Australia, Christmas store subscription services are emerging as a popular trend, catering to the growing demand for convenience and personalisation during the festive season. 

These services typically offer curated packages that include festive decorations, unique gifts, and holiday essentials delivered directly to customers. Many subscriptions provide themed options or customisable selections, ensuring a tailored holiday experience. 

This allows for early preparation, gradual accumulation of festive items, and a prolonged Christmas experience. As the popularity of subscription boxes continues to rise, Australian consumers are embracing this innovative approach to celebrating the holiday season.

Potential Impact

Overall Christmas holiday spending is projected to be $69.7 billion AUD in 2024.

While it is hard to pinpoint the spending occurring in the Christmas-themed retail sector alone, the Christmas store industry is projected to be worth several hundred million to a couple of billion dollars. 

Provided Christmas store subscriptions continue to deliver value to their subscribers and grow in popularity :

In a low growth scenario, where Christmas store subscription services only come to account for 5% of this industry over the next 5 years, the market for Christmas store subscription services would be worth about $50 million AUD by 2030.

In a high growth scenario, where Christmas store subscription services come to account for 10% of this industry over the next 5 years, the market for Christmas store subscription services could potentially be worth as much as $100 million AUD by 2030.

Why this WILL be disruptive:

• Convenience and Personalisation: Subscription services offer a hassle-free, curated selection of high-quality festive items delivered throughout the year. This approach saves time, reducing the stress of last-minute shopping, and allows early preparation, ensuring a more enjoyable holiday experience. They are particularly appealing to busy consumers who value convenience and personalisation, tailoring products to specific tastes, preferences, and consumer values, such as eco-friendly options​.

• Value-Driven Shopping: With many consumers actively seeking deals, especially as 30% of shoppers cut their Christmas gifting budgets in 2023, subscription services can offer competitive pricing through bulk purchasing and direct-to-consumer models. This makes it easier for consumers to find quality, affordable festive items​.

• Omnichannel Integration: Subscription services align with the trend towards omnichannel shopping, catering to the 89% of consumers who plan to use both online and physical stores for their holiday purchases. By integrating both digital and physical experiences, these services appeal to a broad consumer base​.

Why this WON’T be disruptive:

• In-Store Shopping Preference & Tangible Experience: Despite the rise of online shopping, most Australians still prefer in-store shopping for its tactile experience. The ability to touch, feel, and examine products in person is a significant factor that subscription services cannot replicate​. With only around 36% of Christmas shopping expected to be done online, this preference for in-person shopping could limit the appeal of purely digital subscription models​.

• Economic Pressures and Cost Considerations: Subscription services often require upfront payments, which might deter cost-conscious consumers, particularly in a challenging economic environment where average spending on gifts is expected to decrease. The added costs of shipping, combined with the overall price of the subscription, might also discourage some buyers, especially when consumers are more budget-conscious during times of inflation​.

• Market Saturation & Competition: The Christmas retail market is highly competitive, with established retailers, pop-up stores, and seasonal markets already dominating. Subscription services may struggle to break into this saturated market and capture a significant share. Moreover, many traditional retailers are adapting by beginning early discounting cycles, making it harder for new subscription services to compete​.