Black Friday sales tipped to surge despite cost of living pressures
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The news: Nevermind the rising cost of living, Australian bargain hunters are tipped to splurge a record of more than $6 billion on Black Friday sales.
The numbers: The global sales fad begins in earnest today, and research group Roy Morgan predicted Aussies would spend $188 million more than last year — leading to purchases of $6.3 billion during the four days.
The four day sales promotion is expected to account for 10% of festive season spending, according to the National Retail Association. It predicts NSW shoppers will spend most ($1.99 billion), followed by Victorians ($1.63 billion) and Queenslanders ($1.28 billion).
The projections come despite Westpac research this month that found almost three-quarters (72%) of Australians would reduce their Christmas spending in 2023.
The context: Black Friday is a retail industry sales push that began in the US and has been adopted in other countries. National Retail Association director Rob Godwin said many businesses had brought discounting 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," Mr Godwin said.
Consumer confidence could fall further with more rate hikes possible in the coming months. Reserve Bank governor Michele Bullock recently said this week that the nation's inflation challenge was "increasingly homegrown and demand-driven".
The sources: National Retail Association, AAP, Westpac, RBA
