Australian shoppers are tipped to splurge a record amount on Black Friday Sales in 2023 after a year of sluggish retail spending.
The National Retail Association (NRA) expects there will be up to $6.3 billion worth of sales over a four-day period while comparison website Finder went even further and predicted a $6.7 billion spend.
The association’s director Rob Godwin said many brands had brought their discounting strategies forward after a flat start to the festive season.
“Savvy shoppers want to get their holiday shopping done before December and retailers across Australia have taken notice,” Godwin said.
It’s now the nation’s most popular sales event, with a Finder survey of 1,063 people showing up to 9.3 million Australians have already taken part or planned to shop the sales.
The large number of shoppers is partially attributed to people trying to find a way through rising cost of living pressures, Finder head of consumer research Graham Cooke said.
“Black Friday has overtaken Boxing Day in terms of popularity, even though it often doesn’t have as juicy deals,” he said.
“Shoppers are increasingly looking for bargains to stretch their dollar in the lead up to Christmas.”
Some 61% of shoppers have been eyeing clothes and shoes, followed in popularity by electronics and gadgets, beauty, alcohol, accessories and toys.
Cooke said the categories shoppers were planning to save on had not necessarily seen the highest price increases.
“Eight out of the top 10 price increases are for food items — so consumers might be better off hunting for discounts in the grocery aisle rather than the clothes shop,” he added.
Black Friday sales are held on the Friday after Thanksgiving in the United States and gained traction in Australia in the last decade.
Awareness of the sales event here is now almost as high as the Boxing Day sales, according to a survey of 1000 people by strategic insights consultants Nature.
It found two in five people had put off buying things so they could bag a bargain at the end of November and the same amount used it as a chance to avoid the pre-Christmas rush.
The National Retail Association also said consumer confidence had been dented by the latest interest rate hike so the industry was banking on a Black Friday boost.
“The good news is the Black Friday and Cyber Monday sales could be the clean slate retailers are vying for so they can get through to next year’s quieter beginnings,” Godwin said.
But confidence could fall even further soon with future rate hikes expected in the coming months.
The sales also come days after Reserve Bank governor Michele Bullock said the nation’s inflation challenge was “increasingly homegrown and demand-driven”.
Vicinity Centres operates 59 shopping around the country and is banking on a jump in foot traffic, tipping almost two-thirds of purchases will be done in bricks-and-mortar stores.
“Over the past couple of years, we’ve seen customers value the experience of physical retail and that’s set to continue,” group director of customer and asset management Kirrily Lord said.
However, a recent report from Power Retail found 77% of people preferred online sales and a majority of shoppers are hoping for free delivery on their Black Friday purchases.
This article was first published by AAP.
