If last year’s spending trends is anything to go by, Australian retail businesses should be gearing up for a stellar Black Friday weekend, with credit and debit card data from Commonwealth Bank revealing spending on retail goods soared 69 per cent in 2019.
Over the last few years Australian retail businesses have seen a growing demand for retail goods and services, both online and in-store, during the four day period from Black Friday to Cyber Monday inclusive.
The 2019 uplift in sales was more than previous years and part of a rising trend of Aussie shoppers embracing the Black Friday sales, with the overall amount spent on retail goods up 35 per cent in 2018 when compared to the average amount spent in the three weeks prior.
Cyber Monday is also proving popular with Aussie shoppers, with the total amount spent on retail goods up by 25 per cent in 2019, when compared to the average amount spent in the three weeks prior.
Head of Retail and Diversified Industries in CBA’s Business Banking division, Jerry Macey, said shoppers were taking advantage of the recent move towards pre-Christmas discounting.
“Businesses are viewing the Black Friday and Cyber Monday weekend period as an opportunity for them to grow their customer base as spending patterns and behaviours change. It also presents an opportunity for retailers to bring forward sales, optimise their inventory and enhance performance for the year if they manage these sales events well,” Mr Macey said.
“Many retail business customers are telling us they have experienced a move to more online sales due to the pandemic and they expect this to be reflected in the upcoming sale period as well. To ensure they lock in sales, many retailers have even started their offers well ahead of the day itself.”
CBA Institutional Bank’s Managing Director for Industrials, Transport and Consumer, Jake Potgieter, said some of the bank’s major retail customers are expecting sales to be even more elevated this year over the Black Friday and Cyber Monday weekend, as Aussies look to spend more on retail purchases rather than on travel as a result of current travel restrictions.