Frugal Australians splurge on historic Black Friday sales

Electronic gadgets, home entertainment, and holiday bookings have driven a surge in Black Friday sales, with shoppers expected to spend a record amount despite cost-of-living pressures.

Australian consumers are projected to splurge $6.7 billion (US$4.4 billion) during this year’s Black Friday to Cyber Monday sales, marking a 5.5 percent increase from 2023, according to the Australian Retail Association.

This surge in spending is largely due to cash-strapped consumers seeking discounted holiday gifts as household budgets are strained by high interest rates and inflation.

Fleur Brown, the Association’s chief industry affairs officer, noted that crowds have been significant in stores across various segments, and actual trade is expected to meet the industry group’s multibillion-dollar forecast.

“There is a clear preference for products like clothing, accessories, technology, televisions, mobile phones, and even services with special offers from travel companies and beauty parlors,” Brown added.

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Council of Small Business Organisations of Australia chief executive Luke Achterstraat highlighted that popular categories for its 6000 members were electronics, holiday bookings, and music.

Over one-quarter of small businesses were anticipated to participate in this Black Friday, setting a record percentage, according to Achterstraat.

He emphasized, “The trend is on the rise, reflecting consumers’ desire for value and price-consciousness.”

“Events like Black Friday sales and Cyber Monday serve as a reminder that consumers make decisions based on prices and are focused on holiday purchases,” he added.

Research from Monash Business School revealed that almost 66 percent of shoppers planned to make purchases during sales in November and December, with 30 percent intending to utilize buy-now, pay-later schemes.

Stephanie Atto, the lead researcher, highlighted the attractiveness of discounts for gift-givers facing financial pressures.

“Australians are experiencing the strain of living costs, inflation, and high interest rates, so they are saving up to capitalize on promotional periods,” she explained.

“These sales events present a welcome opportunity to find bargains in time for Christmas,” Atto added.

Consumer group Choice cautioned shoppers to remain vigilant against scam websites, unsafe products, and misleading extended warranties as the holidays approach.

It also advised consumers to familiarize themselves with their rights for refunds on faulty items under consumer laws.

Finder, a comparison site, shared findings from internal research indicating product price hikes before sales to make discounts appear larger than they are.

More than half of the 1095 surveyed shoppers noticed price increases before Black Friday, according to Finder.

Black Friday, originating in the United States in the 1980s, was introduced in Australia in the early 2000s and has seen a surge in popularity in recent years.