This Boxing Day shopping season, Australian shoppers are splurging big despite inflation staring with a bloodshot eye.

Research conducted by the Australian Retailers Association (ARA) and Roy Morgan Research revealed that Australians are projected to spend a staggering $1.3 billion on Boxing Day, with an additional $2.4 billion expected during the remaining days of December.

While the data gives retailers a reason to rejoice, however, the spending spree has also a downside as experts believe Australians wasting over $1 billion on unused Christmas gifts could lead to serious environmental concerns, reported The Guardian.

The Australian Institute suggests embracing a circular economy to reduce waste and promote sustainability.

Figures show that shoppers will spend $3.7 billion for the six days following Christmas– a 2.7% jump in spending than last year, ABC reports.

ARA chief industry affairs officer Fleur Brown said that many shoppers take advantage of the Black Friday sales to buy Christmas gifts at discounted prices, rather than waiting until closer to Christmas to make their purchases.

It’s really because of cost-of-living challenges that we’re seeing shoppers out in force today,” she said. “Bargain hunting is a national sport, it seems,” said Brown.

Alexandra Keefe, ARA spokesperson, said that the Boxing Day sales at Chadstone Mall in Melbourne were “absolutely pumping” and successful, with large crowds of shoppers. She’s optimistic about the sales period, indicating that it’s off to a strong start.

“Really positive signs, really busy out there and just a very encouraging Boxing Day sales period,” she told AAP. “So items for the home and garden but also those personal luxury items like beauty, tech and digital are likely going to be very popular,” Keefe said.

Associate Professor Park Thaichonm at the University of Southern Queensland stated that the growth in Boxing Day spending indicates a gradual return to pre-COVID-19 spending habits, as people now have more disposable income and are more confident in their purchasing decisions.

“We’re definitely seeing that the trend of customer spending is recovering compared to the COVID period. People have some more money to spend and they know what to expect compared to a few years ago.”

Meanwhile, Australian Securities and Investments Commission (ASiC)’s Moneysmart says Aussies will spend on average almost $800 each to fund gifts, holidays and celebrations.

The research reveals 74% of people set a budget for Christmas but more than four in ten (44%) have regretted their spending in previous years. Just 29% manage to stick to their plan, with savings, credit cards and buy now pay later (BNPL) services used to fund the festive spend.

ASIC Commissioner Alan Kirkland said although many consumers planned to be careful with their cash, the research showed many others were willing to blow their budget at this time of year. Commissioner Kirkland said this could lead to costly decisions, such as putting too much on credit or entering into high interest debt.

“When it comes to buying gifts, it really is the thought that counts – plan your spending, stick to your budget and avoid entering into high interest debt,” Kirkland said.

‘Even with the best intentions, sticking to a budget can be especially challenging during the festive season, leaving many at risk of falling into costly debt traps,” Kirkland added.