Black Friday brings a massive spike in retail spending
AUSTRALIANS spent-up big during the Black Friday sales last week, almost doubling their typical daily outlay from previous weeks.
As the long-running American shopping event gains traction Down Under, early credit card data from the Commonwealth Bank indicates retail expenditure on the day lifted 87 per cent from the average daily spending during the three weeks prior.
Growth continued over the weekend and into so-called Cyber Monday — a Black Friday spin-off event focused on online-sales, the CBA research indicates.
Black Friday is a well-established annual sales event in the US, falling the day after the Thanksgiving public holiday — the fourth Thursday in November.
Commonwealth Bank senior economist Kristina Clifton said consumers here were driven by heavy discounting, with department stores and electronic goods experiencing the biggest online uplift over the four-day period from Black Friday to Cyber Monday.
“By category, online spending in department stores and electronic goods retailing rose by 238 per cent compared to the average November daily spend, while in store spending was up by 153 per cent,” she said.
“Online clothing sales rose by 146 per cent and in-store clothing sales rose 52 per cent.
“Home furnishings and equipment spending was up by 116 per cent online and 33 per cent in-store.”
Last year, Black Friday sales grew far less compared with the average in previous weeks, at about 28 per cent.
The strong sales growth this year will come as a relief to struggling retailers.
On Thursday, the Australian Bureau of Statistics said growth in retail turnover flatlined in October, defying expectations for a rise of 0.3 per cent.
In a research report published after those figures were released, Westpac senior economist Matthew Hassan said a “spending strike” among consumers was continuing.
“Retail conditions remain very difficult – particularly for smaller retailers, those without online channels and in segments exposed to the downturn in housing,” Mr Hassan said.
The Australian