Boxing Day sales in Australia forecast to rake in $3bn

Australians are tipped to spend $3bn nationwide during the Boxing Day frenzy, with consumers taking advantage of specials before cost of living and inflation pressures catch up.

Australians are tipped to spend $3bn nationwide during the Boxing Day frenzy, with consumers taking advantage of specials before cost of living and inflation pressures catch up to clamp wallets shut in the new year.

A forecast from the National Retail Association (NRA) has predicted NSW to be the biggest spender on the consumer-centric holiday, with a significant $997m spend, followed by Victoria with $926m.

Queenslanders are expected to fork out $514m and WA consumers $63m.

Australian Retailers Association CEO Paul Zahra.

While low unemployment and pandemic savings have propped up strong spending activity this year, this is expected to soften in 2023 given persistent increases in power prices and interest rates, interim NRA chief executive officer Lindsay Carroll said.

“Boxing Day is the last sales event on the retail calendar and consumers will be seeking out bargains, discounts and loyalty rewards in one last hurrah before inflation causes them to tighten their budgets,” she said.

“Retail is preparing for a slow spending period in the first half of next year …. We’re hoping the spending momentum from the festive period will provide enough relief for smaller retailers to trade as normal until inflation is brought back under control.”

In comparison to other shopping events like Black Friday and Cyber Monday, Ms Carroll said Boxing Day still remains supreme as the signature sales date for Australian consumers.

The Australian Retailers Association’s forecast closely confirms this last chance cash splash for the year, with estimates consumers could spend almost $24bn over the period from Boxing Day to January 15, a 7.9 per cent increase over last year.

According to the research conducted with Roy Morgan and Salesforce, the biggest growth will be driven by hospitality venues which will jump to 30 per cent over this time last year.

Boxing Day retail spending forecasts by the National Retail Association.

Boxing Day still remains supreme as the signature sales date for Australian consumers. Picture: NCA NewsWire/Gaye Gerard

Clothing is tipped to see significant growth with a rise of 11.4 per cent over the same period, followed by a healthy 8.9 per cent growth from department stores year-on-year – largely due to unseasonal weather affecting the fashion industry and yielding great deals for customers.

ARA chief executive officer Paul Zahra said the tough pandemic years and economic pressures have consumers partaking in “freedom spending”.

“Christmas trading is focused on gifts for others. Post-Christmas Australians typically turn their minds to purchases for themselves and their household … this year what we’re seeing is what we are calling ‘freedom’ spending where people reward themselves after an intense and challenging period,” he said.

While the rewards and post-holiday treats won’t last long, retailers have already gotten ahead with many offering their sales and specials earlier than December 26, shopping expert from Finder Chris Jager said.

“We can expect to see a plethora of wow-worthy discounts both in-store and online,” he said.