Bumper Black Friday weekend in store for retailers
Retailers could be in for a bumper this Black Friday weekend, according to research from NAB and Commonwealth Bank.
NAB calculates that up to a million dollars a minute will be spent during the period.
“Despite originating in America, Black Friday and Cyber Monday are now a shopping bonanza in Australia, with $5.5 billion expected to be spent,” says NAB group executive personal banking, Rachel Slade.
“One in six of all November retail sales happened during this four-day period last year and we’re anticipating similar trends this year as the economic bounce-back continues.
“Our most recent estimates show e-commerce makes up about 15 per cent of all retail sales during the year, but this surges to almost 30 per cent during this discounted shopping period.”
Computers, appliances, games, toys, clothing and cosmetics are forecast to be among the most popular purchases, based on data analysing previous year’s spending trends, according to NAB.
It says NSW ($1.74 billion), Victoria ($1.45 billion) and Queensland ($1.12 billion) are predicted to see the bulk of spending.
CBA also believes retailers could be in for a bumper Black Friday weekend if the spending trends from past years are any indication.
Its merchant data reveals spending over the four days in 2020 climbed 14 per cent in comparison to the week prior.
Similarly, in 2019 spending across the same four days of Black Friday sales also soared 14 per cent in comparison to the same four days of the week prior.
While sales climbed in both 2019 and 2020 when compared to the prior week, CBA says it is also interesting to note that overall spending increased 10 per cent in 2020 over the four-day Black Friday period in comparison to 2019.
“Shoppers across the country are increasingly taking advantage of the recent move towards pre-Christmas discounting and we would expect this trend to continue this year,” says Jerry Macey, head of consumer and diversified industries in CBA’s Business Banking division.
“Businesses are viewing the Black Friday and Cyber Monday weekend period as an opportunity for them to grow their customer base as spending patterns and behaviours change. It also presents an opportunity for retailers to bring forward sales, optimise their inventory and enhance performance for the year if they manage these sales events well.”
Judging by spending trends of previous years, CBA says the big winners this year are expected to be clothing and cosmetic retailers.
Last year, clothing retailers recorded a 34 per cent spike in spending over the Black Friday period when compared to the same days of the week prior, while cosmetic merchants enjoyed a 46 per cent jump in spending over the same period.
Furniture and electronic retailers also enjoyed a strong jump in consumer spending last year, with furniture businesses recording a 33 per cent boost in spending over the Black Friday four-day period when compared with the week prior, while electronic sales soared 26 per cent.