Research from the Australian Retailers Association (ARA), in collaboration with Roy Morgan, indicates that 27% of Aussies will participate in the 2024 mid-year/EOFY sales. Although this is only 1% more than last year, what’s interesting is the trend of spend moving into major sales event months.
ARA CEO Paul Zahra notes, “These EOFY sales will likely represent one of the last significant opportunities for retailers to stimulate sales, given the current, protracted consumer spending downturn.”
November marked last year’s biggest retail sales thanks to Black Friday / Cyber Monday (BFCM) promotions. Retail sales hit a record-breaking $36.5 billion (seasonally adjusted), 2.2% higher than the same period in the previous year—as recorded by the Australian Bureau of Statistics (ABS).
In June this year, predicted spend from shoppers participating in the mid-year/EOFY sales stands at a total of $10.1 billion, revealing a significant increase of 8.6% over 2023. On average, this translates to $1,638 per person—$22 more per person vs last year.
What are shoppers planning to buy this EOFY?
PayPal research (which predicts a higher 38% participating in the sales) shows that tax-deductible items aren’t the priority this year. Its data indicates shoppers are planning to spend big on:
Fashion – 51%
Electronics – 31%
Homewares and garden – 26%
…and tax-deductible items? A modest 12%
PayPal Consumer Shopping Expert Bonnie Brady explains, “As the cost-of-living crisis continues, it’s clear that Australians are eager to save money whenever and wherever they can, looking to online sales events to help reduce spending.”
This data supports several other retail reports I’ve read recently. The spend trend for 2024 is that shoppers are showing more conservative behaviours—particularly throughout the first half of the year—with more spend moving into sales months, such as EOFY and BFCM.
The bottom line?
Shoppers are thinking more strategically about how to make their dollars stretch further.
For online retailers, this year’s EOFY buzz presents an ideal opportunity to lean into their tech stacks and pull out all the stops to enhance the end-to-end online experience. Why?
While sales events can boost short-term revenue, the real goal is long-term loyalty. Brands that deliver outstanding onsite and post-purchase experiences gain their shoppers’ preference for future purchases once EOFY is over.
Zahra adds, “These EOFY sales will likely represent one of the last significant opportunities for retailers to stimulate sales, given the current, protracted consumer spending downturn.”
Retailers should make the most of this opportunity to create experience-driven connections that last beyond the sale.
Read more about the findings from the ARA and Roy Morgan:
https://www.roymorgan.com/findings/9592-ara-roy-morgan-media-release-eofy-mid-year-sales-2024
And PayPal researched, summarised by B&T:
