Aussies to spend billions at EOFY sales despite credit crunch

Despite cost of living pressures, Aussies are set to get the most out of the mid-year and end of financial year (EOFY) sales, with research predicting a $9.3 billion spend – an increase of $500 million from 2022.

The research conducted by the Australian Retailers Association (ARA) in partnership with Roy Morgan revealed that while we’ll be spending more per person, fewer Australians will actually be shopping during these sales.

Those who plan to shop in the mid-year/EOFY sales will each spend an average of $1,616 – up almost $200 per person from 2022.

New South Wales shoppers are expected to spend $2.5 billion (down 21.8 per cent from $3.2 billion in 2022). While Queensland bargain hunters will spend $2.4 billion (up 41.1 per cent from $1.7 billion in 2022) and Victorians will also kick their sales shopping up a notch with a projected $2.1 billion spend (up 10.5 per cent from $1.9 billion last year).

Baby Boomers and Gen X are set to be the biggest shoppers, encompassing 37.6 per cent or $3.5 billion of the overall $9.3 billion spend.

Online bargain hunters

Online channels will reign supreme during the sales season with 51 per cent of us opting to shop from the comfort of our homes.

ARA CEO Paul Zahra said savvy shoppers will be searching for bargains online rather than brave winter weather.

“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.

“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.”

Zahra said the mid-year/EOFY sales are a great time for shoppers to pick up a bargain on winter and seasonal merchandise or make a tax-deductible purchase.

“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.

While Zahra found the increase in sales spending encouraging, he suggested softening discretionary spending means retailers can’t afford to take their eyes off the prize – providing value for money to cash-strapped Aussies.

“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 mid-year/EOFY sales.

“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 as a tax-deduction.

“There is no better time to buy than during the mid-year sales and EOFY promotions. We expect many shoppers are looking to grab a good deal to save money,” Zahra concluded.

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