Bargain hunters in last hurrah

Australian shoppers are expected to rush the stores on Boxing Day and the last few days before the new year to take advantage of the deep discounts and promotions dangled before them by retailers.

But it could be the last hurrah before the realities of a tough economy hit in 2024.

The National Retail Association expects retailers to finish with a $3bn Boxing Day sales spending spree and around $9bn up to December 31.

The NRA has spotted already huge discounts, some of up to 60 per cent, with heavy discounting spread across categories such as alcohol, consumer electronics, cosmetics and bedding to make it a “buyer’s Christmas”.

This is a slight rise on the year before but represents a cut in real terms, given inflation is running about 5 per cent, suggesting shoppers spent large chunks of their disposable income through the Black Friday sales of November.

Ian Bailey, the managing director of Kmart Group, which operates Kmart and Target, said Black Friday promotions had somewhat diluted traditional Christmas sales, while households from all income levels were showing the strains of rising interest rates and inflation through 2023.

He said he expected many households to focus on “maintaining their lifestyles” into 2024, which would mean a stronger focus on hunting for bargains.

NRA director Rob Godwin said multiple interest rate increases and general economic uncertainty had delivered a flat 2023 pre-Christmas sales period, and retailers were now preparing deeper-than-normal discounts.

He said the Boxing Day sales represented one last opportunity for savvy shoppers to grab a festive season bargain.

“We expect retailers to offer higher discounts than we are used to seeing at this time,” he said. “That’s good news for buyers, but it’s also important for retailers as it provides the cashflow they need to sustain their business operations and employment levels through the quieter parts of the new year.”