The majority (89%) of consumers are likely to participate in End of Financial Year (EOFY) sales this year, with almost half (48%) stocking up on essential items, according to new data from leading global tech company, ShopFully.

Home goods will see the most purchases during EOFY sales (54%), followed by electronics (30%) and fashion and beauty products (28%).

Close to one-third (30%) of respondents shared they only shop during promotions and sale periods, with more than half 56% strategically delaying purchasing some or all big-ticket items until the EOFY sales period.

When it comes to how consumers search for sales, over half (56%) state they are omnichannel, being on the lookout for EOFY sales both online and in-store. Thinking about tax time – 68% of respondents said they will not take advantage of EOFY sales to purchase work related products to claim with their taxes.

ShopFully Australia country manager, Brendan Straw said, “With the majority of consumers likely to participate in this year’s EOFY sales, retailers can rest easy knowing shoppers haven’t been deterred from annual sales periods, despite the current cost-of-living crisis.

“In fact, we found when looking ahead to future well-known sale dates, more than two-thirds (69%) of consumers would likely take advantage of these sales if they were available earlier. Retailers should offer sales more regularly in efforts to drive revenue and increase brand engagement.

“With over half (56%) of shoppers looking for EOFY sales both online and in-store, this is another key learning for retailers, as we now know it is a great opportunity for retailers to engage with shoppers through digital and physical promotion touchpoints.”

Perception of brands who discount regularly

Brand tracking platform,Tracksuit surveyed over 1,000 Australian consumers on the perception of brands who discount regularly. Almost all (96%) of Australians aged 35 to 64 love a brand who regularly discounts and close to two-thirds (63%) of shoppers purchase based on best promotion or discount over their preferred brand.

Nine in 10 (90%) consumers view a brand that discounts regularly as ‘value for money’ and only one in 10 regard those who discount regularly as ‘low quality’.

Tracksuit founder and co-CEO, Connor Archbold said, “Our data shows that 76% of Australian consumers wait for sales before making a purchase – bumping up to 86% when they’re after something expensive – so you can bet consumer spending is high. But is there any real impact on brand recognition or loyalty when it seems every shop you visit has a similar promotion?

“It’s a double-edged sword because the sales period will mean an uptick in sales, meaning more profits. But if you don’t approach these sales periods in the right way, you risk getting lost in the noise of the promotional rush.

“With every business looking to capitalise, competition is at an all-time high causing advertising and marketing costs to spike, so those with sales campaigns happening at the moment are paying a pretty penny for their cut through. 

“This is where off-season marketing comes in. We have a tactic for brands called ‘warming up’, where you essentially build your brand recognition before the sales kick-off, priming customers to think of your brand when the moment is right.

“People aren’t usually discovering your brand on the day of sales. They go into it with a hit-list of brands they are waiting to go on sale and are generally primed for purchase before it even starts. When that time comes, are they going to remember your brand, choose a trusted experience, and value the little touches you offer? Chances are slim unless you have established these associations already in their minds.

“Not only is this a cheaper exercise, but it is also more effective. A simple way to put your brand on the front foot and one that brands should do more of.”