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Australians have set a new record for Black Friday spending, with a staggering $6.7 billion spent over the four-day period from Black Friday to Cyber Monday. This marks a 5.5% increase compared to the previous year.

Breakdown of Spending

The Australian Retailers Association and Roy Morgan reported that Australians spent nearly $1.2 million per minute during this shopping spree. The surge in spending is attributed to a combination of higher wages, no recent rate increases, and the appeal of significant discounts.

Key Factors Driving Sales

Cost of Living: Many Australians took advantage of the sales to manage their budgets more effectively, seeking bargains on essential and non-essential items.

• Early Sales: Some retailers started their sales earlier than usual, contributing to the overall increase in spending.

• Buy Now, Pay Later: Services like Afterpay saw increased usage as consumers used these platforms to budget their holiday spending.

Impact on Retailers

Retailers experienced a significant boost, with many reporting record-breaking sales. The peak season trading period, which includes Black Friday, is crucial for retailers, often accounting for up to two-thirds of their annual profits.

Consumer Behaviour

A survey by RateCity revealed that a large portion of shoppers used the sales to purchase Christmas gifts, with 58% buying gifts on sale. However, there were also warnings about the potential for increased debt, as many consumers used credit to finance their purchases.

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