Black Friday: big spending buyers to focus on home and themselves

The biggest retail event of the year begins Friday and cashed-up households are expected to switch their spending focus.

A record Black Friday shopping long weekend is expected to reinforce the trend of Australians splurging big on their home lives.

Many of the biggest bargains available will be focused on individuals buying for themselves, as well as the typical Christmas gift specials.

The Australian Retailers Association forecasts shoppers will spend a record $5.4 billion during the four-day sales period in stores and online starting Friday and ending on Cyber Monday.

ARA CEO Paul Zahra says the latest Bureau of Statistics data shows spending on household goods is up 18.5 per cent on pre-pandemic levels and this heightened activity should continue “as people are still choosing to stay, play and work at home”.

“We expect the greatest discounts and greatest offers will be in clothing, footwear and personal accessories, because these are the categories that did so poorly during the recent lockdowns,” Zahra says.

“Most of the winter merchandise didn’t get to see the light of day – expect a lot of the winter merchandise to be heavily discounted.

“We expect people will have events to go to and more reasons to update their wardrobe.”

GET IN EARLY

Zahra is also warning people to do their Christmas shopping early to avoid getting caught in a “perfect storm” of supply chain problems that could cause delays.

“There are several issues that retailers are navigating at the moment — everything from Covid impacts, shipping delays and threats of industrial action from port workers and delivery drivers,” he says.

Australian Retailers Association CEO Paul Zahra predicts big spending. Picture: David Swift

Supply squeezes could hit tech purchases, which remain popular because technology dates quickly, and the ARA expects strong demand for phones, computers and televisions.

“In technology and home entertainment, we are encouraging customers that if they see something they like they should buy it because it may not be there when they’re shopping next,” Zahra says.

Now bigger than the Boxing Day sales, Black Friday stemmed from the traditional US shopping long weekend following Thanksgiving, and in Australia it has expanded beyond traditional retail into areas such as tourism, cars, subscriptions and life experiences.

SUPPORT SMALL BUSINESSES

Business software group MYOB’s general manager SME, Emma Fawcett, says small and medium enterprises have had a challenging period and she hopes shoppers will support them.

MYOB’s data has found that since the recent lockdowns, “retail is back with bang”, Fawcett says.

“With restrictions easing and high vaccination rates across the country we’re hoping for a much more stable 2022 for retailers and shoppers alike,” she says.

“The COVID-19 pandemic encouraged many small businesses to get online, which made it easier for consumers to support them.”

NAB group executive personal banking Rachel Slade says e-commerce makes up about 30 per cent of all retail sales during the Black Friday period, twice as much as normal.

“One in six of all November retail sales happened during this four-day period last year and we’re anticipating similar trends this year as the economic bounce back continues,” she says.

“Now’s the time to set a budget, research prices and plan your shopping experience.”

Canstar group executive financial services Steve Mickenbecker says many Australians are sitting on a stockpile of savings and the retail sector is set to boom.

“We’re already seeing discounts of up to 80 per cent from some retailers,” he says.

“This means you could potentially knock off your entire Christmas shopping list without paying full price.”

Morgan Collins and Cat Bloxsom founded Cardigang last year. Picture: Supplied

BLACK FRIDAY BEGINNERS

Cat Bloxsom and Morgan Collins pounced on the push to home-based activities and founded their online knitting education and supplies business Cardigang during Melbourne’s 2020 lockdowns.

This is their first Black Friday sale and they started offering a 20 per cent discount a week early.

Bloxsom says Cardigang has not seen interest in hobbies wane despite lockdowns ending.

“If anything it’s highlighted the importance and benefits of slowing down, focusing on one activity at a time and the joy and sense of achievement that comes with making something yourself,” she says.

“As two 30-somethings, before the pandemic you would’ve found us out most nights of the week, but now there’s nothing more enjoyable than a cozy night in on the couch, knitting up our next masterpiece. It’s about finding the right balance.”

Originally published as Black Friday: big spending buyers to focus on home and themselves