The mammoth Black Friday to Cyber Monday four-day sales bonanza is set to deliver more than $5 billion in retail sales nationally, according to the National Retail Association.
NRA CEO Dominique Lamb this spendathon was growing in popularity each year with $5.3 billion forecast to be spent between November 27-30, including $1.8 billion in online sales.
“The four days from Black Friday to Cyber Monday has emerged as one of the signature periods on the retail calendar. In 2020 businesses are very optimistic that it will generate real momentum as we head into December,” Lamb said.
“Each year we’re seeing more shoppers look to knock off the Christmas shopping earlier, due in large part due to late-November sales events such as Black Friday and Cyber Monday.
“The growth in online sales has been accelerated by the pandemic, but we’re still expecting to see a lot of action in bricks-and-mortar stores. Digital purchases offer great convenience, but many consumers also crave a more wholesome shopping experience which can only be obtained in-store.”
She said the 2020 Christmas period was taking on added significance as Australia seeks to recover from its first recession in 30 years. “We’re hopeful that Christmas 2020 can break the back of the recession and set both retail and the economy on a course to recovery.”
More shoppers heading in-store
Around 60% of Australian consumers are expected to visit a bricks-and-mortar store to make their Black Friday purchases, despite traditionally being seen as an online sale event here and overseas.
Digital platform ShopFully surveyed 1,000 Australians in October 2020 and found that 66% of shoppers in Queensland are most likely to shop in-store while 46.7% of consumers in WA are least likely to visit a store on Black Friday. In NSW, 63.5% intended shopping in-store, with 57.5% in Victoria and 50% in South Australia planning to visit a store to shop.
“It’s unsurprising Australians are wanting to get back in-store with lockdown restrictions further lifting across the nation with almost 64% planning to use Black Friday as an opportunity to purchase early Christmas gifts,” ShopFully country manager, Dean Vocisano said. “In spite of this, what we’re seeing is that while shopping in-store is preferred for making a purchase, Australians are still researching for the best deals and discounts online, signalling an opportunity for retailers to showcase competitive price points and personalised offers.”
ShopFully data found that 78%of shoppers would research items to be added to their cart for Black Friday prior to the big day, an increase of 68% of standard shopper behaviours during non-sale periods.
This Black Friday, 45% percent of shoppers will be looking to snap up technology products that includes mobile phones and tablets to gaming consoles with Queenslanders sitting above the national average when it comes to technology shopping.
The analysis also found that shoppers looking to purchase technology products are willing to spend almost one and a half more, ($431.9) than those who are interested in purchasing non-tech items ($303.5). Online shoppers are also inclined to spend on average, $375 compared to those shopping in- store ($339.84).
MYOB research confirms strong desire for discounts
Around 57% of consumers plan to shop during the Black Friday sales, up from 45% who said they participated last year, according to new research from MYOB, with 45% saying they rely on the sales to save money on their Christmas shopping.
Of the 1,012 consumers surveyed, almost half (49%) expect to see more products discounted this year and 42% expect businesses to offer higher discounts.
A desire for discounted goods is unsurprising following what has been a year of economic uncertainty for many, according to MYOB Economist Jon Manning.
“It’s natural for consumers to be cautious of their spending, particularly if they’ve had a year of financial turmoil. Despite consumers’ desire for discounts, preliminary retail trade data from the ABS for October shows an increase in spending compared to 2019, suggesting a strong Christmas period ahead.”