Australian shoppers are tipped to spend $9.3 billion on EOFY sales, an increase of $500 million on last year.
Research from the Australian Retailers Association (ARA) in collaboration with Roy Morgan found while shoppers will spend more per person than last year, only 5.8 million Australians overall are planning to engage in the sales period. This is down from 400,000 consumers in 2022.
Australian shoppers who plan to invest in mid-year and tax time promotions are forecast to spend an average of $1,616 – up almost $200 per person from 2022.
Queensland consumers are predicted to lead spending at $2.4 billion - up 41.1% from $1.7 billion in 2022 - while Victorians will allocate $2.1 billion (up 10.5% from $1.9 billion last year).
The 50–64-year-old demographic is set to be the strongest spending market, encompassing 37.6% or $3.5 billion of the overall $9.3 billion spend. Moreover, 51% of Australians are expected to shop online during the EOFY sales.
ARA CEO Paul Zahra said the period offers retailers an opportunity to offload winter and seasonal inventory.
“The mid-year sales are a fantastic opportunity for bargain hunters to grab a great deal as retailers slash prices on a range of clothes, shoes, accessories, homewares and electricals to make way for new season’s merchandise,” Zahra said.
“Shopping online has proven to be particularly popular at this time of the year as shoppers look for convenience and to shop from the comfort of their own home, particularly during the colder winter months.
“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.”
Zahra said while the overall mid-year sales spending forecast increased by 5.7% from 2022, there are fewer people shopping.
“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.
“Discretionary spending is certainly softening, but the reality is that those not significantly impacted by interest rate increases are looking for great deals and are prompted during the EOFY sales to purchase items for work or business that they can claim a tax deduction.”