Black Friday sales boost retail spending

Household spending increased 0.4% in November (3% year-on-year) with shoppers spending more than $36 billion across the country, according to seasonally adjusted figures released by the Australian Bureau of Statistics (ABS).

This follows a 0.9% rise in October and a 0.2% fall in September.

Six out of the nine spending categories rose in November, mostly driven by Black Friday sales.

ABS Head of Business Statistics Robert Ewing says: “Black Friday boosted sales in Recreation and culture by 0.9%, making it the largest contributor to overall spending growth. Spending in cinemas continued to grow strongly, with major releases such as Wicked, Gladiator II and Moana 2 all opening in November.

“Spending on Clothing and footwear and Furnishings and household equipment also rose by 1.8% and 0.8% respectively.

“Growth in these categories drove the 0.4% rise in discretionary spending. Strength in new vehicle purchases also contributed to higher discretionary spending, with the Federal Chamber of Automotive Industries reporting a notable rise in SUV sales in November.”

Most categories recorded growth, with the most significant year-on-year sales increases coming from other retailing – including recreational, sporting goods and cosmetics (up 7%) and cafes, restaurants, and takeaway (up 3.6%) along with food (up 2.8%).

Household goods increased (up 1.2%), The only category to record a decline was Department Stores (down 1.2%)

Australian Retailers Association (ARA) Chief Industry Affairs Officer Fleur Brown says November’s results were bolstered by Black Friday activity and spending food and hospitality categories as Australians entered peak season.

“The growing popularity of Black Friday gave retailers some much-needed reprieve in November with shoppers seeking out bargains amid intense financial pressure.

“This bargain hunting focus and a continued trend towards spending on little luxuries and the desire to celebrate the festive season with friends and family strongly contributed to November’s overall spending growth.

“We are pleased to see such a solid spending result in a challenging year, especially given the Reserve Bank of Australia’s decision to again keep the cash rate on hold,” Ms Brown said.

The ARA notes there are some timing differences in 2024 figures, with Cyber Monday falling in December with those results to appear in the following month’s figures.