Fashion brands and retailers across Australia are set to take a decent chunk in an expected $10.5 billion total retail spend in the mid year/end of financial year (EOFY) sales period this year.
This is according to research by Roy Morgan and the Australian Retailers Association, which shows that the total retail spending projection is up by $400 million or 3.9 per cent on 2024 spending during EOFY.
The most popular categories this year, according to a nationwide survey, are clothing, footwear and accessories (mentioned by 34 per cent of respondents), household appliances and white goods (mentioned by 19 per cent), and electronics and tech (mentioned by 12 per cent).
“The sales have already begun,” ARA chief industry affairs officer Fleur Brown said.
“Retailers have reduced prices on a wide selection of clothes, shoes, accessories, homewares, furniture and electronics, and it’s a terrific opportunity for shoppers to find great deals for winter.
“Many savvy shoppers are on the lookout for work-related products to claim on their tax return. This is making computers, phones, and other technology highly sought after.”
Brown said the mid-year/EOFY sales are especially important for retailers this year, given the slowdown in discretionary spending.
“These sales present an opportunity for retailers to stimulate growth as they begin to recover from the protracted spending downturn,” she continued.
“Household budgets have been under significant strain and the mid-year/EOFY sales are a great opportunity for shoppers to get great value for money.
“Interestingly, the percentage of people planning to spend online is down 11 percentage points on last year to 44 per cent. This may indicate people are planning to hit the stores more this year for bigger-ticket bargains.
The research from the ARA in collaboration with Roy Morgan found more than a quarter of Australians (26 per cent or 6.1 million) will participate in the sales – virtually unchanged on a year ago.
However, of those who intend to shop in the EOFY sales, 37 per cent plan on spending more than last year, 42 per cent plan on spending the same, and 21 per cent plan on spending less.
Overall, the average mid-year/EOFY shopper will spend an extra $76 this year, up 4.6 per cent to $1,714.
Shoppers aged under 35 are again expected to be the biggest spenders with an average spend of $2,065, and an overall spend of $4.3 billion. This is also the largest group of spenders with 2.1 million people in this age group taking advantage of the EOFY sales.
Men plan to spend at a greater rate than women, with men set to spend an average of $2,044 compared to $1,430 for women. This leads to overall spending of $5.8 billion for men and $4.7 billion for women.
On top of this, more Australians this year are planning to spend in each of the three higher spending categories – and the most popular is for spending from $1,000-$4,999 – mentioned by 36 per cent of people taking part in the EOFY sales (up 15 per cent from a year ago).
Additionally, 11 per cent of people taking part say they will spend $5,000 or more – up 5 per cent on last year – while 22 per cent (up 1 per cwnt) say they plan to spend from $500-$999.
In contrast, fewer people are planning to spend less than $500 – now 31 per cent, down 21 per cent from a year ago.