Black Friday/Cyber Monday is no longer just a North American phenomenon. Since 2021, Cyber Weekend has been the biggest sales event in the retail calendar, surpassing the traditional Boxing Day sales in Australia.
According to Shippit data, last year, the volume of Black Friday sales increased 27% YoY while in spite of cost-of-living pressures, both the volume and value of orders was up at last month’s Click Frenzy.
“The demand that builds up during an extended period of cautious spending typically releases at the first big sales events of the season. Black Friday/Cyber Monday is all about big sales, and many consumers are seizing the opportunity to grab a great bargain while retailers capitalise on the opportunity to shift excess stock,” Shippit co-founder and co-CEO, Rob Hango-Zada said.
“Cost-of-living pressures will be top of mind after the interest rates increase, but we anticipate shoppers coming out in force to stock up ahead of the festive gifting season. The impact on December sales will be harder to forecast. Predictions across the industry vary from super-peak to super-low.
“Tighter household budgets could also have a knock-on effect into where they spend too. Value focused retailers like Kmart, Target and Big W who offer more affordable options and choice for customers, are set to benefit over ‘upmarket’ retailers.
“Ultimately, retailers are preparing for every scenario with flexible staffing and forecasting ensuring they have the right carriers to handle fluctuating volumes. On-demand delivery has surged – up 180% YoY in the last 12 months, primarily skewed to food and pet supplies – and we anticipate that to continue in the months ahead as more Australians take advantage of the convenience and price of online shopping.”