Boxing Day sales to set $23.5bn record high spending before slowing down

This year’s Boxing Day sales period is expected to set a new record for the summer sales of $23.5bn.

Mackay 2021 Boxing Day sales. Picture: Lillian Watkins generic 50% off half-price

Despite cost-of-living pressures caused by high inflation and eight consecutive interest rate rises this year, Australians are expected to splurge on the Boxing Day sales.

According to forecasts released by the Australian Retailers Association, this year’s Boxing Day sales period is expected to see a 7.9 per cent increase in consumer spending compared with last year, setting a new record for the summer sales of $23.5bn.

ARA chief executive Paul Zahra said the prediction was an encouraging sign amid a “challenging economic environment”.

“It’s clear to see Australians' love affair with shopping continues,” Mr Zahra said. “Whilst it’s encouraging to see continued record results for retail, it’s important to acknowledge there are a range of factors influencing the results – including inflationary pricing, and unseasonal weather severely impacting the fashion industry.”

Hospitality venues are expected to see a 30 per cent increase in growth, with clothing expected to jump 11.4 per cent on last year.

However, the cost-of-living crunch is expected to cause spending to slow down in 2023.

While Australians have altered their spending habits, Finder shopping expert Chris Jager said Boxing Day major discounts would be enticing for many Australians doing it tough, with Australians expected to spend as much as $3bn on Monday alone.

“Spending has mainly been on pause due to inflation and shifting financial priorities as Aussies fork up extra cash on everything from groceries to petrol,” Mr Jager said.

“Despite this, plenty of shoppers are looking forward to bagging a bargain during the sales … many will be looking to the sales to save on things they’ve had their eye on.”

According to a survey by Finder, Gen X and Gen Z are expected to be the bigger spenders this year, spending $450 and $418 respectively on average, while Millennials and Baby Boomers are predicted to be a bit more frugal. Men are also predicted to spend 10 per cent more than women on Boxing Day sales, spending an average of $397 compared with $360.

And with online retailers such as Amazon and eBay already offering a range of early Boxing Day deals, it’s easy to cash in on big-brand products from the likes to Apple, Samsung, Bose and Dyson.

“A lot of retailers in Australia will be taking part in the sales. You can expect to see physical retailers like Myer, David Jones, Target and JB Hi-Fi offering discounts in-store and online,” Mr Jager said.

“Sites like eBay, Amazon, The Iconic and ASOS will be slashing prices across a wide range of products.”

The ARA said Salesforce Holiday Shopping Insights showed that retailers could expect to see a 15 per cent increase in online traffic on Boxing Day compared with Black Friday.