CBA predicts Australians will spend $4bn this Boxing Day in boost to retailers

CBA data shows shoppers are expected to hit the stores after Christmas with plans to spend more than $500 each in the sales.

Australians are set to hit the shops after Christmas Day in search of bargains and an in-store experience. Picture: Britta Campion / The Australian.

Australians flush with cash from a year of lockdowns and keen to pick up a bargain are expected to splurge more than $550 each during the Boxing Day sales to inject as much as $4bn into local retailers.

A survey by the Commonwealth Bank shows that 40 per cent of people looking to take part in the Boxing Day sales have already predicted how much they’ll be spending – with the average expected to be $557 per person. That’s up 14 per cent from what people said they spent a year ago, or $487.

CBA’s executive general manager, Everyday Banking, Kate Crous said that as the nation bounced back with open borders and the end of lockdowns, Australians were embracing shopping.

“This is welcome news for retailers, who are keen to see consumers return after a tough few months, and is also great for consumers hoping to get good value from their shopping,” Ms Crous said.

CBA debit card spend in December this year is also likely to increase by 23 per cent relative to the average across other months, while credit card spend is expected to grow 18 per cent for the same period.

And despite the emergence of the new omicron strain of Covid-19 which is starting to cause some jitters among consumers, the CBA Boxing Day sales survey found that many people are still willing to enter stores after Christmas Day.

When asked why consumers are opting to go in-store, survey respondents said they were after an in-store experience (46 per cent) and are looking for inspiration and ideas (43 per cent). The main motivations for planning to shop online were convenience (60 per cent), avoiding queues (54 per cent) and avoiding traffic (43 per cent).

According to CBA’s historic credit and debit card data, around 70 per cent of every dollar spent during December is expected to be in–store, compared to online.

The research also shows that men are looking to spend more on average than women, at $646 versus $459, while parents also hope to make the most out of the sales, at $731 on average, for those with one or two children.

Pent-up demand for shopping is also set to continue in the post-Christmas sales, with a record $21bn expected to be spent in stores and online across the country, an increase of 2.1 per cent on the previous year, according to the Australian Retailers Association.