Black Friday Sales Surge as Cost-of-Living Pressures Shape Holiday Spending

As we approach the peak shopping season, businesses are preparing for one of the most impactful sales periods on record. Black Friday, Cyber Monday, and Boxing Day are fast approaching, and consumers are balancing holiday excitement with tighter budgets.   

Senior Advisors Evan Dela-Grammaticas and Alex Gavalas offer their perspectives on how today’s economic conditions influence these critical shopping events—and how businesses can stay competitive.

How Cost of Living Pressures are Reshaping the Sales Season  

Economic conditions significantly impact consumer behaviour. Retail sales will hit $69.7 billion despite rising costs, reflecting a 2.7% increase over last year. Consumers strategically delay purchases until major sales events to capitalise on discounts.   

Paul Zahra of the Australian Retailers Association notes that consumers now make discerning choices, opting for affordable indulgences and cutting back on non-essentials. Businesses must refine promotional strategies; Black Friday and Cyber Monday expected to generate $6.7 billion in sales, a predicted 5.5% increase over last year.

Black Friday’s Growing Influence in the Retail Calendar  

Black Friday has surpassed Boxing Day as the primary shopping event, with more than 50% of consumers planning to shop during Black Friday and Cyber Monday, compared to only 32% for Boxing Day.   

Early discounts appeal to budget-conscious shoppers and encourage early Christmas spending, with nearly 60% intending to shop ahead for gifts. Over 40% of consumers are actively researching deals, presenting businesses with a critical opportunity to engage undecided shoppers through strategic offers and targeted ads.   

Sector Highlights: Key Spending Areas  

Cost-of-living pressures influence retail categories in varied ways. Food spending will rise by 4.2%, with similar growth in the hospitality and retail sectors, while department stores and household goods will decline by 1.5% and 3.8%, respectively.

Many consumers, aware of impending costs for household items, wait for Black Friday to purchase larger goods, seeking to upgrade essential items needing replacement. 

Retailers’ Strategic Playbook for Peak Season  

With Black Friday, Cyber Monday, and Boxing Day approaching, Evan and Alex recommend the following strategies

• Prioritise Value-Driven Messaging: Consumers focus on quality and savings, so ensure your messaging reflects both.  
• Engage Undecided Shoppers with Targeted Ads: Many consumers are still researching, so timely ads can influence their purchase decisions.
• Enhance Online Experiences: Fast, seamless online shopping and integrated social media retailing are crucial to staying top-of-mind.
• Highlight Essential Big-Ticket Items: As shoppers look to replace items like fridges and washing machines, Black Friday promotions offer a prime opportunity to meet this demand.

Looking Ahead: Insights on Consumer Resilience  

Despite rising costs, consumers are intent on preserving the holiday spirit, with 56% planning to match last year’s Christmas spending and over 21% intending to spend even more. This resilience underscores a trend: consumers prioritise meaningful holiday experiences and are willing to spend where they see value. Businesses can support these sentiments through strategic pricing, thoughtful product positioning, and authentic value messaging.  

Final Thoughts

“Black Friday and Cyber Monday have now firmly outpaced Boxing Day as the leading sales events,” says Evan. “This shift creates an opportunity for businesses to capture early holiday spend and strengthen brand loyalty.” Alex adds, “In a high-cost environment, it’s important for businesses to understand and meet consumer needs, offering practical, value-driven solutions that resonate.”  

As consumers navigate the season’s demands, the right business strategies, blending early engagement, targeted offers, and an emphasis on value, will help businesses stay competitive in a shifting sales landscape.