Shoppers set to splurge $9.3 billion in mid-year sales

Shoppers sales splurge mid-year
Fewer Australians are expected to shop, but the average spend per person will be up $200 from 2022. (Source: Bigstock)

Australian shoppers are expected to spend $9.3 billion during this year’s end-of-financial-year (EOFY) sales period, according to data from the Australian Retailers Association (ARA) and Roy Morgan.

Although fewer Australians are expected to shop overall, about 51 per cent will do so online while the average spend per person will be up $200 from last year to $1616.

By demographic, the 50-64-year-olds will be the biggest spenders contributing 37.6 per cent or $3.5 billion to the overall $9.3 billion target.

ARA CEO Paul Zahra said the mid-year sales are a “great time to pick up a bargain” on winter and seasonal merchandise or make a tax-deductible purchase.

“We’re in the midst of a cost-of-living crisis, and this is certainly reflected by the fact that 400,000 fewer Australians will be opening their wallets in the midyear/EOFYsales.”

Although discretionary spending has softened, Zahra predicts that rising interest rates may prompt shoppers to use the EOFY sales period to make purchases.

“We are also heading towards the EOFY and with tax time on the horizon, we typically see a lot of savvy shoppers on the lookout for work-related products to claim – making computers, phones and technology highly sought after.”

By state, Queensland will spend $2.4 billion, up 41.1 per cent from $1.7 billion last year while Victoria will spend $2.1 billion, up 10.5 per cent from $1.9 billion.

NSW is expected to register $2.5 billion, down 21.8 per cent from $3.2 billion.

This article was first published on sibling website Inside Retail.