Aussies are set to spend big in mid year sales as the cost of living crunch has people spending more consciously and looking for bargains.
A big spend on mid year and EOFY sales promotions is expected this year with the ARA expecting Australian Shoppers to spend up to $9.3 billion in this period. While the spend is expected to increase $500 million on 2022, its important to note the effect of inflation related cost increases on these numbers as 400,000 fewer Australians will be partaking in the sales events over the next few weeks compared to last year.
The research, undertaken by the ARA in collaboration with Roy Morgan, reveals that of the 5.8 million who plan to shop in the mid year/EOFY sales, each person will spend an average of $1,616 – up almost $200 per person from 2022.
The 50–64-year-old demographic are set to be the biggest shoppers, encompassing 37.6 percent or $3.5 billion of the overall spend.
Online shopping is still the biggest draw especially in winter months as shoppers prefer to stay warm and dry inside scooping up deals. 51 percent of Australians will shop online during the mid-year/EOFY sales.
“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,” said ARA CEO Paul Zahra. “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 acknowledges the cost of living pump effecting these numbers and the demand but believes sales events such as these are ideal for shoppers looking to save. “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.”
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