Black Friday sales are expected to provide a significant boost to Australia’s retail sector, with nearly $7 billion forecast to be spent across the weekend. This represents a 4% increase from last year. Early discounts are drawing in consumers ahead of the festive season, and the promotion-heavy event could offer some relief to retailers facing pressure from tighter household budgets.
Once seen as an American tradition, Black Friday has now become a major date on the Australian retail calendar. It competes with Boxing Day as one of the year's busiest retail events, attracting millions of shoppers looking for bargains online and in store. Many retailers are capitalising on the momentum by linking these sales with Christmas promotions to maintain shopper interest and lift December sales.
This year, around 6 million Australians are expected to take part in the Black Friday event, according to industry data. Spending across the four-day sales period, which leads into Cyber Monday, is forecast to hit $6.8 billion. Online retail continues to grow and now represents about 22% of total sales during this period, compared to 15% five years ago. However, while revenue is rising, there is increasing pressure on profit margins as deep discounts reduce earnings.
The increase in sales activity brings welcome relief to the $444 billion retail industry, which has been dealing with high inflation and falling consumer confidence. Industry groups note that the value of Black Friday extends beyond short-term boosts, helping to sustain retail momentum during the lead-up to Christmas. This is a period when many businesses earn a large share of their yearly income.
Not all indicators are positive. A recent survey revealed that only 39% of small businesses plan to take part in this year’s Black Friday promotions, a steep drop from 61% last year. This reveals a divide, where large chains are embracing the sales event while smaller businesses may be cautious about the costs of offering discounts in an already challenging environment.
