As Australians continue to weather the economic storm, this end-of-financial-year (EOFY) sales period will be a key moment in the retail calendar for businesses and shoppers alike. $36.2 billion was spent during last year’s EOFY season – an increase of 2.9% from the year before – as Aussies flocked to save. It comes as no surprise that three quarters of Australians use sales events to purchase items they’ve been planning to buy, especially when times are tight, with 60% making a purchase during EOFY in the past two years.
And it couldn’t come fast enough. Retailers are in desperate need of a revenue boost, as insolvencies in the sector are up almost 20% from last year, with big names like Jeanswest, Katies, Rivers, and more collapsing. As competition across the retail space heats up, many brands are capitalising on the popularity of sales moments by rolling out their deals early.
But with larger budgets to put towards marketing spend, big retailers dominate search results even if they aren’t offering the best deals, making it harder for smaller retailers to cut through. So how can small businesses compete with the big dogs, and demonstrate their value to Aussie shoppers?
Smart shoppers are a small retailer’s edge
From yo-yo pricing to price gouging, price-conscious consumers are catching on to the strategies used by bigger retailers and taking matters into their own hands. Shoppers are dedicating even more time to pre-purchase research to ensure they secure genuine value, resulting in a power dynamic shift in the retail space.
Timed with the rise of AI-powered search and shopping tools, which present one of the biggest opportunities in retail since the rise of e-commerce, increasingly discerning consumers are looking beyond the windows of Google search and traditional promotions to inform their spending. With a new wave of instant price comparisons and saving tools at their fingertips, consumers are more informed than ever before.
Without needing to spend an extra dollar on advertising, small retailers with genuine offers can use this shift to their advantage to increase discoverability within the apps where consumers are already searching for their next purchase. When brands and customers can connect meaningfully in one place, this takes friction out of the buying process on both sides.
Winning on value, not ad spend
As Australians’ budgets shrink, the loyalty that once existed for brand names is also diminishing, paving the way for SMBs to win over new audiences based on value. According to Deloitte, 60% of consumers are moving away from name-brand products to save money. Now, they care most about product quality and the value they get for the price – something that bigger players don’t always provide.
It’s understandable, then, that brand trust in the supermarket duopoly is waning. The ACCC’s landmark supermarket inquiry into Coles and Woolworths showed that consumers are fed up with price elasticity and deceptive deals. Already losing credibility with shoppers, both supermarkets were crowned Australia’s least trusted brands for 2025 by Roy Morgan.
Finder recently found that more than half (52%) of consumers have caught on when prices were hiked ahead of a sales period, with 41% of these deciding against buying the product they were after. For smaller retailers with honest discounts, this shift represents an opportunity to grow brand trust and credibility with price-conscious consumers actively looking for the best value deals.
With tools that can scan and compare thousands of products instantly, such as Zyft, smaller retailers’ genuine deals are now surfaced alongside major brands. When product search results are unbiased and based on real savings, brands with the best deals are easily discoverable, creating a new source of organic traffic through tools that put the consumer first. Success now doesn’t have to rely on traditional advertising, just transparent and competitive practices that provide true value to customers.
As technology continues to empower consumers with unprecedented access to information, the retail landscape demands a renewed focus on value and transparency. This heightened awareness amongst consumers means that businesses that prioritise these focuses will cultivate deeper trust and loyalty, becoming a powerful draw in a crowded market.
By offering truly competitive pricing and being upfront about all aspects of the purchasing journey, smaller retailers can attract discerning consumers who appreciate genuine deals and straightforward interactions over flashy promotions. This commitment to transparency and value isn’t just a sales tactic; it’s a fundamental strategy for building long-term customer relationships and thriving in an increasingly informed and empowered consumer environment during EOFY and beyond.
Joel Gibson is a consumer finance expert at Zyft.