Australian shoppers are tipped to spend $10.1 billion on mid-year/end of financial year (EOFY) sales in 2024. This is up $800 million or 8.6 per cent from 2023, with retailers expected to drive this through promotions and marketing.
Research from the Australian Retailers Association (ARA) in collaboration with Roy Morgan found more than a quarter of Australians (27 per cent or 6.2 million) will participate in the sales – up 1 per cent or 400,000 more shoppers than last year.
Those who plan to shop in the mid-year/EOFY sales will each spend an average of $1,638 – up $22 per person from 2023.
Of those who plan to shop in the EOFY sales, 35 per cent plan on spending more than last year, 43 per cent plan on spending the same and 22 per cent plan on spending less.
The most popular categories are clothing, footwear and accessories, which was mentioned by 39 per cent of respondents. This was then followed by electronics and tech and household items - mentioned by 12 per cent of respondents, with 11 per cent mentioning appliances and white goods.
ARA CEO Paul Zahra said the mid-year sales have already commenced, noting that many retailers will reduce prices across clothes, shoes, accessories, homewares, furniture and electronics.
"Shopping online has become particularly popular during this time of year, offering the convenience of shopping from home, especially during the colder winter months,” Zahra said.
"As we approach the end of the financial year, many savvy shoppers are on the lookout for work-related products to claim from their tax return, making computers, phones, and other technology highly sought after.
“Whilst an additional $800 million will be spent this year, much of that increase is due to Australia’s rapidly growing population.”
Zahra added the mid-year/EOFY sales are especially important for retailers this year, given the slowdown in discretionary spend.
“These sales will likely represent one of the last significant opportunities for retailers to stimulate sales, given the current, protracted consumer spending downturn.
“Household budgets have been under significant strain and the mid-year/EOFY sales are a great opportunity for shoppers to get great value for money.”