Australians will splash $1.6 billion on Boxing Day sales alone, as budget-conscious shoppers gravitate towards a bargain despite growing cost-of-living pressures.
Sales are tipped to rise by 4.3 per cent, delivering strong end-of-year momentum for retailers according to data from the Australian Retailers Association and Roy Morgan.
The spending surge is expected to continue into the coming week, with shoppers projected to spend $3.8 billion through to the new year.
Early Christmas purchasing and a solid build-up through December have created a strong platform for Boxing Day trading, the association’s chief executive Chris Rodwell said.
“Retailers are finishing the year on solid footing,” he said.
“The growth we’re seeing highlights both the resilience of the sector and the enduring appeal of Boxing Day as a premier discount event.”
Household goods are expected to be the most popular items on Boxing Day, with $476 million in sales forecast, followed by clothing, footwear and accessories at $226 million.
Hospitality spending is tipped to increase by 6.8 per cent from last year to $141 million.
Bargain shoppers are being urged to support local retailers during the festive spending period, with Mr Rodwell noting every purchase helps fund local jobs, training, wages and community investment.
“Ultra low-cost offshore platforms like Temu and Shein cannot match that contribution and are not held accountable to the same standards,” he said.
ANZ general manager Kate Britton says strong spending momentum is expected, driven by competitive pricing, increased availability of online deals and customer desire to snap up bargains and maximise value during the festive season.
“We’re seeing a strong trend toward value-driven shopping, with major sales events like Boxing Day playing a central role in purchasing decisions,” she told AAP.
“Retailers are responding by leaning into the sales season more than ever, offering highly competitive deals both in-store and online, which is amplifying this behaviour.”
ANZ forecasts shoppers will inject $5.1 billion into the economy during the holiday shutdown period, which runs until January 5.
While spending typically moderates after the festive peak, Ms Britton said it does remain slightly elevated as consumers enjoy holiday experiences, travel and prepare for the year ahead.
“The spending boom provides a crucial boost following the Christmas period and helps retailers clear seasonal inventory, which supports cashflow and sets businesses up for the new year,” Ms Britton said.
“The uplift also benefits sectors like hospitality and tourism, making Boxing Day a key driver of activity for businesses across the country.”
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