The Australian Retailers Association in collaboration with Roy Morgan forecast that over the four-day period of the Black Friday/Cyber Monday weekend (Friday, 25 November to Monday, 28 November 2022), credit cards will get a workout.
ARA chief executive Paul Zahra said Aussie shoppers are hoping to make Christmas purchases ahead of price rises and supply chain disruptions.
“The Black Friday sales are the biggest pre-Christmas event on the retail calendar and its popularity is continuing to grow in Australia. After starting off as an American shopping tradition, the Black Friday sales have become a global phenomenon and millions of Aussies are set to take part,” Mr Zahra said.
“The event is renowned for having the biggest pre-Christmas bargains and this year will be no different. We’re expecting huge amounts of traffic in-stores and online, with sales to reach $6.2 billion this year — an increase of $200 million on 2021.”
Around a quarter (25 per cent) of Christmas shopping is completed in Black Friday week alone with a third (33 per cent) already completed in the first three weeks of November according to Salesforce’s Holiday Insights Hub.
The Salesforce research also showed the average discount rate will be highest during Cyber Week, averaging 22 per cent.
“We know that many people are more conscious about their household budgets with the cost of living going up and interest rates on the rise, so the Black Friday sales are an ideal time to complete your Christmas purchases, save money and ensure that your gifts are delivered on time,” said Mr Zahra.
“There’s no doubt it’s a challenging economic environment, but what’s pleasing is that retail sales overall are currently at record levels. The impacts of rising interest rates and inflation have yet to slow household spending and we’re forecasting upbeat trading with pre-Christmas sales forecast to reach nearly $64 billion — a 3 per cent increase on last year.
“2023 is set to be a more challenging year with a slowdown expected to Australia’s economic growth. But as it stands right now, consumer spending is strong and that’s set to continue over the festive trading period, which will give many businesses confidence for their most important time of year.”