For small and big businesses, unprecedented events have taken their toll on profitability, which flows down to consumers and employers.
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Helping to jump-start the economy and rekindle consumer confidence is just around the corner - as EOFY sales offer us a chance to help ourselves and the businesses in our regions.
In collaboration with Roy Morgan, the Australian Retailers Association (ARA) forecasts that 6.2 million Australians plan to shop mid-year sales and spend an average amount of $1420 each.
A large majority (83 per cent) of consumers planning to spend during the mid-year sales say they plan to spend the same or more than they did last year.
Retailers have kick-started their mid-year sales campaign and bargain hunters are set to oblige by spending $8.8 billion in stores and online as businesses look to clear out their excess stock.
- Paul Zahra, CEO, Australian Retailers Association
Australian Retailers Association CEO Paul Zahra said mid-year sales were a great opportunity for consumers to pick up a bargain as retailers look to clear out their excess stock.
"With tax time around the corner, savvy consumers will also be on the lookout for work-related products which they can then claim from July 1, so we expect products like computers, phones and tablets to be popular purchases," he said.
"It's also a great opportunity for consumers to make a day of it and head into towns and cities for their mid-year sales shopping. Foot traffic remains well below pre-pandemic levels due to flexible working, while tourist numbers will take years to bounce back. Coming into the city and having the full shopping and dining experience will go a long way to boosting the recovery efforts of those businesses."
Of the $8.8 billion that's forecast to be spent, $3.2 billion will come from NSW, $1.9 billion from Victoria and $1.7 billion from Queensland.
Consumers planning to spend during the mid-year sales will be doing an average of 52 per cent of their shopping online.
Men will spend at a greater rate, with average purchases totalling $1778, compared to $958 for women.
"The mid-year sales are a great opportunity for consumers to pick up a bargain as retailers look to clear out their excess stock. Expect to see prices slashed on a range of items from fashion, shoes and accessories to electronics, bedding and homewares as retailers make room for their new season lines to start the next financial year," Mr Zahra said.
Linda Lambrechts
Wine, beer and spirits specialist. Editor SH Magazine
Wine, beer and spirits specialist. Editor SH Magazine
