Saturday, June 15, 2024

Shoppers to spend $9.3 billion on mid-year/EOFY sales

Aussie shoppers are tipped to spend $9.3 billion on mid-year/End of Financial Year (EOFY) sales – up $500 million from 2022 – as retailers kickstart their mid-year and tax time promotions.

Research from the Australian Retailers Association (ARA) in collaboration with Roy Morgan found whilst shoppers will spend more per person than last year, less Australians overall are planning to splash out on the mid-year/EOFY sales in 2023 (5.8 million Australians – down 400,000 on 2022).

“Those who plan to shop in the mid-year/EOFYsales will each spend an average of $1616 – up almost $200 per person from 2022.”

“Of the projected $9.3 billion, $2.5 billion will be spent in NSW (down 21.8% percent from $3.2 billion in 2022). Shoppers in Queensland will spend $2.4 billion (up 41.1% from $1.7 billion in 2022) and $2.1 billion in Victoria (up 10.5% from $1.9 billion last year).

“The 50–64-year-old demographic are set to be the biggest shoppers, encompassing 37.6% or $3.5 billion of the overall $9.3 billion spend,” the research found.

Just over half (51 per cent) of Australians will shop online during the mid-year/EOFY sales.

ARA CEO Paul Zahra says 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.

“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,” he said.

“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.”

Mr Zahra said while the overall mid-year sales spending forecast increased by 5.7% from 2022 there are fewer people shopping.

“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 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,” Mr Zahra said.

The ARA-Roy Morgan Snap SMS survey was conducted on Friday, 19 May – Wednesday, 24 May, 2023.

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