Retailers are set to reap $8.8 billion in mid-year sales spending, according to forecasts from the Australian Retailers Association (ARA) in collaboration with Roy Morgan.
The research predicts 6.2 million Australians plan on shopping in the mid-year sales and will spend an average amount of $1,420 each.
A large majority (83%) of consumers planning to spend during the mid-year sales say they plan to spend the same or more than they did last year.
Of the $8.8 billion that’s forecast to be spent, $3.2 billion will come from NSW, $1.9 billion from Victoria and $1.7 billion from Queensland.
Consumers planning to spend during the mid-year sales will be doing an average of 52% of their shopping online.
Men will spend at a far greater rate, with average purchases totalling $1,778 compared to $958 for women, according to the forecast.
ARA CEO Paul Zahra said CBD businesses will be key winners, after being impacted by low levels of foot traffic as a result of the pandemic.
"Foot traffic remains well below pre-pandemic levels in our capital cities due to flexible working while tourist numbers will take years to bounce back.
"Coming into the city and having the full shopping and dining experience will go a long way to boosting the recovery efforts of those businesses.”
Tax time will also have advantages for retailers, Zahra added.
“The mid-year sales are a great opportunity for consumers to pick up a bargain as retailers look to clear out their excess stock. Expect to see prices slashed on a range of items from fashion, shoes and accessories to electronics, bedding and homewares as retailers make room for their new season lines to start the next financial year,” Zahra said.
“With tax time around the corner, savvy consumers will also be on the lookout for work related products which they can then claim from July 1, so we expect products like computers, phones and tablets to be popular purchases."
**The ARA-Roy Morgan Snap SMS survey was conducted with an Australian-wide cross-section of 2,807 Australians aged 18+ on Friday May 20 - Tuesday May 24, 2022**