Aussies expected to spend $10.5b at fin year sales, experts warn against fake discounts and overspending

With Aussies expected to splash out a staggering $10.5b at the end of financial year sales, experts are warning shoppers to be aware.

Aussies have been warned to be aware during shopping ventures.

With Aussies expected to splash out a staggering $10.5b at the end of financial year sales, experts are warning shoppers to be aware of fake discounts and overspending.

A survey last year by comparison site Finder found the practise of inflating prices only to discount them for sale events had become widespread among many retailers, with one in two shoppers noticing the trend.

“Some retailers artificially inflate prices right before a sale to make the discounts seem larger than they actually are (and) in doing this, retailers can create a sense of urgency and encourage customers to buy during the sale period,” Finder shopping expert Chris Jager said.

“This is false advertising, but it can be difficult to prove when a product’s price is constantly bouncing around.”

While there are rules and regulations in place to stop retailers from using misleading and deceptive practices, it’s not illegal for businesses to set their own prices as long as they are communicated clearly and accurately.

It’s why Brisbane personal stylist and She’s So Seasonal content creator Sarah Strozkiy said it was vital for shoppers to keep their wits about them and not get caught up in the sales hype.

“The key with shopping is to shop with intention and not with an impulse,” she said.

She recommended conducting an audit of your wardrobe to determine what you had and what you needed, creating a list and setting a budget.

Brisbane stylist Sarah Strozisky reveals how to make the most of the EOFY clothing sales and how you can look good for less. Picture: Nigel Hallett

“Let’s say it’s a $5 top and then it’s a $6 pair of pants, eventually you’ve spent $40 and you think you’ve got a bargain but then you try everything on and nothing fits or it doesn’t match anything you own and so you’ve wasted your money,” she said.

Instead, she recommended trying the discount item on in store first, and then seeing if you could find a better and cheaper version as you continued to shop.

The stylist also warned consumers to be ware of multi-purchase discounts, such as buy one, get the second cheaper item half price.

“It’s really important not to feel guilty or trapped into a sale, and you’ve got to really read the fine print,” she warned.

“Just because it’s on sale doesn’t mean that you can’t be smart about what you’re spending.”

Mr Jager also recommended asking stores about price matching and becoming familiar with the returns policy.

Professor Gary Mortimer, QUT Business School.

Sarah Strozkiy’s top tips for navigating sales

1. Audit your wardrobe and work out what you need and don’t need before you hit the shops

2. Write a list and shop with intention

3. Set a budget – It’s easy to get caught in the hype of red sales tags and overspend

4. Look for versatile pieces that will match with wardrobe items you already own. It needs to be able to mix and match and make at least three outfits with your existing clothing

5. Buy timeless pieces that won’t date so you can have years of wear out of them. Think blazers, plain T-shirts, neutral cardigans or knits, jeans, classic trousers, white sneakers and black ankle boots

Originally published as Aussies expected to spend $10.5b at fin year sales, experts warn against fake discounts and overspending