As ChannelNews reported earlier this week, OZ consumer electronics retailers including JB Hi-Fi, The Good Guys and Harvey Norman are stocking up warehouses for an entire month of Black Friday sales in the country, rather than just a single day of Black Friday sales.
Now, new data now shows that retailers in the country are expecting a staggering $69.7 billion boost in sales during the six-week peak season leading up to Christmas, marking a 2.7 per cent increase on last year’s figures.
The research from Roy Morgan reveals that more Australians than ever will embrace the Black Friday/Cyber Monday sales window (29 November – 2 December) to capitalise on bargain gifts.
Shoppers are set to spend a record $6.7 billion during the four days, an increase of 5.5 per cent over the same period last year.
With a cost of living crisis having gripped the country, customers are waiting for the sale season to get the best deals for the products on their wishlist.
“Shoppers are being savvier than ever with their dollars,” said Australian Retailers Association CEO Paul Zahra.
“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.
“It’s 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.”
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.
Also, $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).
A breakdown of the expected retail outlook by states shows that shoppers in NSW are set to record the biggest growth in sales on last year, up 3.4 per cent.
TAS is forecasted to grow at 5.9 per cent, QLD will see growth of 3 per cent, VIC will increase by 2.3 per cent, and WA is preparing for smaller 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 indicated that the RBA easing the interest rate later this year, would further spur retail growth. “We remain hopeful of an interest rate reduction when the RBA meets in November which would have a positive impact on consumer confidence,” said Zahra. However, the RBA seems unlikely to reduce it for the remainder of this year as it still attempts to tackle inflation.
Data from the Australian Bureau of Statistics (ABS) earlier this week showed retail sales rose 0.7 per cent in August from July when they edged up just 0.1 per cent.
