Australian retailers look set to be battered by one of their worst Christmas seasons since the global financial crisis, as consumers shift away from traditional gifts to experiences and donations.

Plunging consumer confidence and $25 billion worth of tax cuts have done little to send people back to the shops, but bricks and mortar retailers are being hit on two fronts as the slow economic growth combines with a fundamental shift in consumer preferences.

Pre-Christmas consumer confidence is now at its lowest since 2008, according to the latest ANZ-Roy Morgan Consumer Confidence survey. GST revenue is down by more than $550 million on what was expected in the federal budget.

Commonwealth Bank chief economist Michael Blythe said the bank’s household spending intentions survey showed a reluctance by consumers to spend on goods and a trend towards spending on experiences such as travel and entertainment.