Aussies plan bigger Black Friday spending despite cost pressures

• Australians expect to spend an average of $346 during Black Friday sales, up 6.8 per cent from last year.
• More than half say economic conditions have affected their shopping plans, while 39 per cent have delayed purchases because of living costs.
• Retailers remain optimistic about Christmas sales despite concerns over rising costs and weaker consumer demand.

Australians are preparing to spend more this Black Friday despite household budget pressures, with shoppers increasingly delaying purchases and waiting for discounts.

New research from e-commerce platform Shopify shows Australians plan to spend an average of $346 over the Black Friday and Cyber Monday sales period, up 6.8 per cent from $324 last year.

The research surveyed 2,000 Australian consumers in July, right before the Reserve Bank’s September interest rate increase.

It comes despite 54 per cent of respondents saying economic conditions have negatively affected their holiday shopping plans.

Four interest rate hikes this year have pushed up mortgage repayments, while higher prices for groceries, fuel and other essentials continue to eat into household incomes.

That has left many Australians with less money for discretionary spending as the Christmas shopping season approaches.

Almost four in 10 Australians have delayed purchases because of rising living costs, while 24 per cent leave products in online shopping carts waiting for prices to fall.

Another 85 per cent said they would rather wait for the right product than settle for the easiest available option.

The findings suggest Australians are becoming more strategic about their spending, although it remains unclear whether Black Friday is encouraging additional purchases or simply bringing forward shopping planned for later in the year.

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Shopify told The Money Edition it did not have data showing how much planned spending was for essential purchases, Christmas gifts or discretionary items.

Retailers expect a bumper Christmas

Despite household budget pressures, 83 per cent of Australian businesses surveyed expect holiday sales to increase this year, compared with 76 per cent globally, the research found.

That optimism persists despite 37 per cent citing increased competition as a major challenge, while 34 per cent pointed to rising operating costs.

James Johnson, Shopify’s head of enterprise for Australia and New Zealand, said Australians were becoming more selective.

“Australians are still willing to spend this holiday season, but they’re putting more work into deciding what’s worth their money,” Johnson said.

“They’re researching, weighing up more options and increasingly using AI to help them find products that fit what they’re looking for,” he added.

Black Friday officially falls on Friday, November 27, in Australia this year, with sales continuing through the weekend until Cyber Monday on November 30, although many retailers are expected to launch discounts earlier.