Monday, July 15, 2024

Shoppers to spend $10 billion on EOFY sales

Aussie shoppers are tipped to spend $10.1 billion on mid-year/end of financial year (EOFY) sales – up $800 million or 8.6% from 2023 – as retailers showcase their mid-year and tax time promotions in a bid to entice cash-strapped shoppers.

Research from the Australian Retailers Association (ARA) in collaboration with Roy Morgan found more than a quarter of Australians (27% or 6.2 million) will participate in the sales – up 1% or 400,000 more shoppers than last year.

Those who plan to shop in the mid-year/EOFY sales will each spend an average of $1,638 – up $22 per person from 2023.

Of those who plan to shop in the EOFY sales, 35% plan on spending more than last year, 43% plan on spending the same and 22% plan on spending less.

The most popular categories are clothing, footwear and accessories (mentioned by 39% of respondents), electronics and tech (mentioned by 12% of respondents, household items and décor (mentioned by 12% of respondents) and appliances and white goods (mentioned by 11% of respondents.)

ARA CEO Paul Zahra says the mid-year and EOFY sales provide an excellent chance for shoppers to snag deals on winter and seasonal items or make tax-deductible purchases.

“The mid-year sales have already commenced and present a fantastic opportunity for bargain hunters to score great deals, as retailers reduce prices on a wide selection of clothes, shoes, accessories, homewares, furniture and electronics,” Mr Zahra said.

“Shopping online has become particularly popular during this time of year, offering the convenience of shopping from home, especially during the colder winter months.

“As we approach the end of the financial year, many savvy shoppers are on the lookout for work-related products to claim from their tax return, making computers, phones, and other technology highly sought after.

“Whilst an additional $800 million will be spent this year, much of that increase is due to Australia’s rapidly growing population,” he said.

Mr Zahra said the mid-year/EOFY sales are especially important for retailers this year, given the slowdown in discretionary spend.

“These sales will likely represent one of the last significant opportunities for retailers to stimulate sales, given the current, protracted consumer spending downturn.

“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,” he said.

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