Australians to Spend 43% More This Black Friday Weekend
â–¼ Summary
– Australian retail confidence is rising with 78% of businesses feeling more optimistic than last year and 76% expecting higher holiday sales.
– Consumer optimism is growing with planned Black Friday spending increasing to $324 in 2025, though 58% of shoppers are setting stricter budgets.
– AI adoption is increasing with 61% of consumers likely to use it for holiday shopping, but 72% remain wary and value human connection.
– Retailers are sharpening strategies with 66% introducing new deals and 65% starting sales earlier to navigate economic headwinds like rising costs.
– Hybrid shopping dominates with 38% of consumers splitting purchases evenly online and in-store, while complex checkout processes remain a major barrier.
A significant surge in consumer spending is anticipated for this year’s Black Friday weekend in Australia, with individuals planning to allocate 43% more than they did during the previous year’s sales event. This optimistic outlook is supported by fresh data indicating that both retailers and shoppers are entering the holiday season with increased confidence and a clear strategic focus.
Business sentiment is notably high, as nearly eight out of ten retail companies express greater optimism compared to last year. A strong 76% of these businesses are projecting higher sales throughout the coming holiday period. This positive business environment is matched by consumer intentions, with the average planned expenditure for the Black Friday Cyber Monday period rising to $324, a substantial increase from the $226 spent the year before.
This financial optimism, however, is paired with a more disciplined approach to shopping. A majority of Australian shoppers, 58%, are establishing firm spending limits for themselves. Over a quarter intend to enforce stricter budget controls this year, although 39% acknowledge that adhering to their budget presents a significant challenge. Furthermore, shopping timelines are shifting earlier; 27% of consumers plan to begin their holiday purchasing sooner, a figure that climbs to 30% among the highest-spending demographic, those expecting to spend over $1,990.
According to Shaun Broughton, Managing Director for APAC and Japan at Shopify, the current consumer mindset is both hopeful and deliberate. He notes that shoppers are starting their buying activities earlier, moving effortlessly between different sales channels, and actively seeking genuine value. Retailers who wish to succeed must respond with precision, combining early customer engagement, completely frictionless checkout processes, and a thoughtful integration of technology and personal service to build lasting loyalty.
For leading brands, preparation is key to capturing this consumer intent. Karim Zuhri, CTO at Koala, emphasized that earning customer trust during peak events is fundamental. His company’s strategy involves ensuring seamless, high-performance online experiences even under extreme traffic loads. This includes optimizing website speed and stability, investing in search engine and geo-targeting optimizations, and implementing intelligent systems that integrate with their commerce platform to boost operational efficiency.
The promotional landscape is also evolving to attract cost-conscious shoppers. Brands like Princess Polly recognize that their customers approach Black Friday strategically, often building lists in advance and waiting for the most compelling offers. Stephanie Moore, the Global Brand Director, stated that meeting customers on their preferred platforms is vital. For her brand, this means a significant investment in live shopping events, particularly on TikTok, alongside smart advertising and creative content designed to stand out.
The role of artificial intelligence is expanding rapidly, yet a desire for human connection remains strong. Research shows that 61% of Australian consumers are likely to use AI for at least one shopping-related task, with nearly half planning to leverage it to save money. Half of all shoppers believe AI will improve their experience, especially in discovering deals and finding inspiration.
On the business side, 86% of retailers feel positive about AI’s potential impact, and 89% are either already investing or planning to invest in AI shopping assistants. Common applications include using AI to generate content and to forecast inventory needs more accurately. However, trust is a significant hurdle; 72% of Australians remain wary of the technology, the highest skepticism rate worldwide, and 78% assert that buying from a human still matters. The most successful retailers will likely be those that combine AI tools with transparency, clear consumer choice, and easy access to human support.
Despite rising confidence, retailers continue to navigate economic challenges, including rising costs and general uncertainty. In response, many are refining their promotional tactics, expecting that 40% of their seasonal sales will come from specially priced offers. Strategies include introducing new types of deals, offering larger or more frequent discounts, and starting sales earlier and extending their duration. A notable 31% of businesses plan to focus on loyalty programs to cultivate deeper customer relationships, while 33% intend to launch new products or collections to drive sales.
Timing is critical. Businesses plan to run promotions for just over twelve days on average, with 36% starting in early November. Meanwhile, a significant 40% of shoppers are already preparing their shopping lists well ahead of the traditional holiday rush, indicating that brands launching promotions too late risk missing key opportunities.
Product discovery is increasingly a hybrid experience. Australians are finding items through a blend of in-store and online browsing, followed by word-of-mouth recommendations, online reviews, and social media. To capture this fragmented attention, retailers are boosting investments in social media ads, online advertising, digital video campaigns, and email marketing.
The hybrid shopping model itself is dominant. More than a third of consumers plan to split their shopping evenly between online and physical stores. Another 31% will do most of their shopping in-store, while 25% will shop mostly online. A common behavior is shopping online for smaller items and visiting stores for larger purchases.
A critical factor for conversion is a smooth checkout process. Over half of all shoppers have abandoned a purchase because of a complicated checkout, with this being especially true for higher spenders. The primary drivers of customer loyalty are clear: discounts, free shipping or returns, and excellent customer service. For retailers, mastering these elements will be the key to turning seasonal interest into enduring customer relationships.
(Source: ITWire Australia)