Australians are expected to splash out and spend through this year’s Black Friday and Cyber Monday sales period from November 25 to 28, according to predictions from professional services firm, KPMG, despite the backdrop of rising cost of living, increased interest rates and a potential recession.
However, consumer spending may start to reduce into the pre-Christmas spending period, in what could prove to be a challenging holiday season for retailers.
“Strong employment and income growth are helping consumers push back against the current headwinds, and while these pressures are growing it looks like holiday-period retail spending will at least match 2021,” KPMG senior economist, Sarah Hunter said.
“I expect we’ll see total spending at least match last year, given the latest data and where our forecast models are pointing.”
KPMG head of retail Lisa Bora said that given expectations for an early peak in spending, retailers should remain focused on offering value, not just discounts, between now and the end of the year.
“Communicating that value for money proposition consistently, is going to be crucial in encouraging customers to continue that spending momentum in the lead up to Christmas,” she said.
“Channels of delivery, be it online or in store, need to focus on speed and convenience in what is expected to be a busy spending period, to meet increasing customer expectations.”