Australian shoppers are set to spend a record $6.7 billion during the four day Black Friday/Cyber Monday weekend, an increase of 5.5 per cent on the same time last year.
Roy Morgan revealed this prediction, with the research firm adding that Black Friday sales will add to an expected $69.7 billion boost for retailers in the six-week lead up to Christmas - up 2.7 per cent on last year’s figures.
“Shoppers are being savvier than ever with their dollars,” Australian Retailers Association CEO Paul Zahra said
“They’re looking for the best value when it comes to buying presents for their loved ones, which is why sales events like Black Friday/Cyber Monday weekend are consistently growing in popularity. We are also seeing a continued trend towards spending on little luxuries whilst some broader discretionary categories are forecasted to be in decline.”
Zahra continued, saying it has been an incredibly tough year for retailers and shoppers alike.
“Retailers are pulling out all the stops to ensure they have the best product lines and gift solutions, customer service offerings and enhanced online platforms to make shopping during this peak season more seamless than ever.”
Celebrations with loved ones will feature strongly this peak season with food spending tipped to encompass the lion’s share of spending. Australians are set to spend $28 billion on food, marking an increase of 4.2 per cent on a year ago.
Discretionary (Non-food) categories will see a more modest increase of 1.6 per cent on 2023’s figures. Within this, $5.7 billion will be spent on clothing (up 3.3 per cent), $10.8 billion on other retailing (up 4.7 per cent) - which includes categories such as recreational goods, books, cosmetics - and $10.6 billion on hospitality (up 4.7 per cent).
Department stores spend is predicted to decline, with an expected spend of $3.6 billion (down 1.5 per cent), as is spending on household goods, with a total of $10.7 billion expected (down 3.8 per cent).
Across the states, shoppers in New South Wales are ready to record the biggest growth in sales on last year, up 3.4 per cent. Tasmania is forecasted to grow at 5.9 per cent, Queensland will see growth of 3 per cent, Victoria a 2.3 per cent increase, and Western Australia is preparing for marginal growth of 0.2 per cent.
NSW shoppers are gearing up to spend $21.9 billion, while VIC shoppers are projected to be spending $17.8 billion.
Zahra said this peak season trading period will be invaluable for retailers, with most discretionary retailers making up to two thirds of their annual profit during peak season.
“Whilst the year-on-year growth projections remain modest, these figures in most categories are encouraging after another challenging year. We remain hopeful of an interest rate reduction when the RBA meets in November which would have a positive impact on consumer confidence.”