Increasingly popular Black Friday sales boost Australian retail sector

A shopping event that started in the US is becoming increasingly popular in Australia and helped give retailers a pre-Christmas sales bonanza.

Increasingly popular Black Friday sales helped boost Australia’s retail trade in the lead-up to Christmas, new figures show.

According to Australian Bureau of Statistics data released on Monday, retail turnover rose 7.1 per cent in November compared with the previous month, led by Victoria as Melbourne stores reopened their doors for a full month following harsh COVID-19 second wave lockdowns.

ABS director of quarterly economy wide surveys Ben James said the brief second wave lockdown in South Australia led to a relatively flat result as falls in most industries were offset by a rise in food sales.

Online sales accounted for 11 per cent of Australian retail turnover in November as shoppers continued to embrace e-commerce, while department stores had a 21.1 per cent surge in sales.

Shoppers snapped up clothing, footwear and personal accessories the most, up 26.7 per cent, while household goods jumped 12.7 per cent.

Large queues led into the Nike and Adidas stores at DFO South Wharf in Victoria on Black Friday. Picture: Tony Gough

The ABS said Black Friday and the release of new games consoles and new iPhones added to the sales growth.

The shopping event falls the day after Thanksgiving Day in the US and got its name from pushing revenue for many stores out of the red and into the black.

According to NSW-based social trends research group McCrindle, only 4 per cent of Australians had never heard of Black Friday in 2020 compared with 24 per cent in 2017.

Investment bank Citi last week said Australian retailers had reported exceptional Black Friday sales, but Boxing Day was mixed due to low stock levels.

Shoppers flocked to Melbourne’s Bourke St Mall for Black Friday sales.

The latest ABS figures also showed a 12.3 per cent month-on-month rise in cafe, restaurant and catering sales, but spending on takeaway food only inched 0.7 per cent higher.

BIS Oxford Economics chief economist Sarah Hunter said that reflected a shift back towards dining in person, enabled by eased restrictions and lower coronavirus case numbers.

“Looking ahead, spending patterns will continue to normalise towards their pre-COVID pattern, particularly once the vaccine has been rolled out and the uncertainty over outbreaks prompting further lockdowns diminishes,” Dr Hunter said.

“This will benefit cafes, restaurants and clothing and will weigh on household goods and food, both of which have been disproportionate beneficiaries over the last year.”

Total retail turnover soared 13.3 per cent in November compared with the same month in 2019, the ABS data shows.

But there will likely be a return spending on services, particularly travel and tourism, Dr Hunter says.

“As a result, after a comparatively strong 2020 we expect growth in retail turnover to lag behind total household spending in 2021.”

Originally published as Increasingly popular Black Friday sales boost Australian retail sector