Shoppers waiting until Black Friday to spend

The survey of consumers revealed that half of shoppers (50 per cent) said they want to save money on items they know they’ll need in the new year, while almost two in five shoppers (39 per cent) said they were delaying their normal purchases until the sales due to the rising cost of living.

CBA general manager, shopping, Rochelle Eldridge, said elevated inflation and higher prices are putting pressure on many households that are making everyday savings top of mind for many Australians.

“We are seeing people prioritise essential items, with seven in 10 shoppers (71 per cent) planning to buy essential everyday items or larger items that they need at the sales this weekend,” she said.

CBA’s credit and debit card spending data to 11 November 2022 showed a decrease in nominal spending growth over the first two weeks of November, with clothing and footwear and general retail spending growth both easing over the fortnight.

CBA’s consumer research revealed that more than half of Australians (61 per cent) are planning to spend less on Christmas this year and in an effort to stick to a smaller budget, over a third (38 per cent) of Black Friday and Cyber Monday shoppers will be on the lookout for Christmas presents this sales period.

Australians expect to spend an average of $482.90 this sales weekend with many favouring technology and electronics, followed by Christmas gifts and fashion and clothing.

Australian retailers can expect to see an increase in turnover, with merchant data from the bank revealing spending over the four days from Black Friday to Cyber Monday in 2021 (26–29 November inclusive) climbed 9.4 per cent in comparison to the week prior.

Last year, the clothing retail sector experienced the largest spike, recording a 42 per cent increase in spending over the Black Friday period when compared to the same days the week prior. Within the sector, department stores enjoyed a significant 120 per cent increase in sales for the same period.

This year, Black Friday and Cyber Monday fall on Friday (25 November) and Monday (28 November), respectively.