Three in four Australians (75%) plan to shop during Black Friday this year, a 13% increase on 2022, with more than half (55%) relying on the sales event to save money on Christmas shopping, according to new research commissioned by business management platform MYOB, as cost-of-living pressure heats up heading into summer.
The research of over 1,000 Australian consumers also found that one in two (52%) are concerned about managing their Christmas budget this year. Price is the highest ranked factor in gift purchase decision making for 68% of respondents, followed by quality at 51%. Forty per cent say they will pay for Christmas shopping with a credit card and 35% will dip into savings.
Four in 10 are feeling pressure to make personal sacrifices to afford gifts, with 67% of this cohort cutting back on non-essential spending, including dining out and alcohol, and 50% cutting back on essentials like groceries or reducing energy consumption.
Fifty-one per cent of respondents expect all businesses, large and small, to offer discounts during the Black Friday sales event, which takes place on the 24th of November this year.
MYOB’s General Manager – SME, Emma Fawcett said, “between interest rates, groceries, bills, and general increase in costs, consumers are looking to make their dollar go further this Christmas with discount gift options. While these large discount events can present a challenge for the smaller businesses, the good news is consumers are still looking to support local and Australian retailers.”
Despite the pressure on finances, only 27% of survey respondents said they would be more focused on buying Christmas gifts through large discount websites such as Temu or Wish this year compared to previous years. Forty-eight per cent said they are more focused on buying from small businesses this year.
The most popular destination for Christmas shopping is in person at Australian mainstream stores (49%), or in person at local shops or neighbourhood shopping centre (48%). Thirty-five per cent said they will shop mostly online from mainstream Australian stores, and 29% said they would do the majority of their shopping from independent Australian stores.
The Australian Retailers Association has tipped Aussies will spend $66.8 billion between November and Christmas Eve.
“Black Friday and the end of year festive season is vital for the revenue of many small businesses around the country. Consumers are feeling the pinch, but if retailers offer quality products and attractive deals they will look to shop local and support Australian businesses,” said Fawcett.
ENDS
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About MYOB
MYOB is a leading business management platform with a core purpose of helping more businesses in Australia and New Zealand start, survive and succeed. MYOB delivers end-to-end business, financial and accounting solutions direct to businesses employing between 0 and 1000 employees, alongside a network of accountants, bookkeepers and consultants. For more information visit myob.com or follow MYOB on LinkedIn.
About the research
Research undertaken by Pure Profile Australia Pty Ltd on behalf of MYOB of 1029 Australian consumers aged 18+ between 26 and 31 October, 2023.