Despite an expected softening in the broader pre-Christmas spending period, the popularity of Black Friday is set to continue, giving retailers a much-needed boost to the holiday shopping season.
In fact, Black Friday and Cyber Monday sales are set to outstrip Christmas for spending, a new study from Honeycomb Strategy has revealed.
The data shows Black Friday has become a pivotal moment in the Australian retail calendar, with 65 per cent of Aussies planning to shop the Black Friday sales on 24 November.
According to the research, nearly half of Australians plan to use Black Friday or Cyber Monday (27 November) deals for Christmas shopping, with more than half saying they will be buying gifts for loved ones in the sales. Of those doing their Christmas shopping during Black Friday, nearly half (45 per cent) said they will use the mega sale to do all their festive gift buying.
Honeycomb strategy managing director, John Bevitt, says the research shows retailers and brands can’t underestimate the increasing power of Black Friday and Cyber Monday sales in bringing in dollars.
“Traditionally, Black Friday and Cyber Monday were perceived as more US-based shopping events, where ecommerce has really dominated for many years,” he says.
“Now, Australian shoppers are taking advantage of Black Friday and Cyber Monday sales and other events such as Click Frenzy in late October, particularly as more and more brands and retailers offer special deals across the sales weekend.”
Aussies are set to cut back on spending this Christmas, with one in four (23 per cent) saying they’re planning to spend less on gifts this year. One in five Aussies (20 per cent) say they are planning on spending less on toys this year, while clothing, electronics, home décor and furnishings are also set to take a hit, with very few planning to spend more on products for their home.
However, research by the Australian Retailers Association (ARA), in partnership with Roy Morgan, reveals shoppers are tipped to spend $6.36 billion across the four-day Black Friday/Cyber Monday weekend.
“While projections are looking somewhat flat for the pre-Christmas period, retailers will be pleased that the Black Friday weekend sales event appears set to buck this trend,” says ARA CEO, Paul Zahra.
“The event is renowned for having the biggest pre-Christmas bargains and this year will be no different. We’re expecting significant traffic in-store and online, with sales to reach $6.36 billion this year, an increase of $188 million on 2022.”
Broader pre-Christmas spending in 2023 is tipped to edge in line with last year’s results as shoppers increasingly tighten their budgets with $66.8 billion to be spent in the November to 24 December Christmas trading period.
Bricks-and-mortar shopping is still set to have its place in 2023, with more than half of Aussies (54 per cent) saying they still enjoy the experience of visiting physical stores to shop, particularly in December.
“Many more Australian shoppers this year will be looking to save money where they can, especially in the leadup to Christmas, and this is where the Black Friday and Cyber Monday sales can swoop in,” adds Bevitt.
“However, a powerful benefit for retailers is that the majority of Australians still like to visit physical stores, so getting the Christmas shopping experience and pricing on point well ahead of the season has become critical for sales.”