Australians set to spend at Boxing Day sales, pushing back against cost-of-living pressures

Australians are expected to spend big on Boxing Day, as discretionary retailers gear up to offer their biggest discounts and deals yet. Young Australians are predicted to be the biggest spenders, despite feeling the brunt of cost-of-living pressures.

Australians feeling the pressure of the cost-of-living crunch will dig deep into their pockets to spend big at Boxing Day sales on Monday in an effort to save more money in the long run.

The latest figures predict Australians will spend a total of $23.9bn on Tuesday, some $400m more than in 2022 and almost three times more than the forecast $6.36bn during Black Friday sales, according to the Australian Retailers Association.

Australians are expected to fork out an average of $356 each on Boxing Day, according to a survey by Finder.

Despite Millennials (27-42 years old) feeling they are shouldering the brunt of cost-of-living pressures, they have reported the highest spending levels for this Boxing Day, saying they plan to spend $432 each, followed by Gen X (43-58 years old) gearing up to spend $354 each.

It is anticipated shoppers in NSW will spend $7.5bn in the post-Christmas period, compared to Victorians spending a more modest total of $6.1bn.

“Consumers are focused on getting the most out of their household budget, which is why the sales have been so popular,” ARA executive director Paul Zahra said. “Most Australians are happy to dip into their savings where necessary.”

Boxing Day sales are expected to offer consumers the greatest discounts and deals, as most discretionary retailers reported subdued spending during the Christmas period and would be looking to clear excess and seasonal stock, Mr Zahra said.

“Most retailers will be participating in the Boxing Day sales with deep discounts across every category in every store,” he said.

“These discounts will be better than Black Friday in seasonal categories as retailers aim to clear their stock for the new season’s intake.”

Retailers that are expected to offer some of the best discounts and deals include Myer, David Jones, Catch, The Good Guys, BWS, and Rebel.

Myer will heavily reduce the price tag of its products including beauty and tech, such as the Garmin Epix Sapphire Edition Smartwatch, reduced from $1699 to $849 and the Paris Glam IPL Cordless Hair Remover, from $219 to $124.95.

Rebel is offering up to 50 per cent off selected footwear, including New Balance, Nike and Adidas, as well as a buy-one-get-one-half-price deal for clothing.