Tuesday 21 November 2023
Black Friday weekend to make up more than a quarter of holiday purchases – hitting $6.36bn
This weekend's Black Friday and Cyber Monday extravaganza is set to account for more than a quarter of all holiday purchases in 2023, with price-conscious shoppers doing their due diligence to find the best deals.
Findings from Salesforce, released by the Australian Retailers Association (ARA), found online shopping traffic is up 5% year-on-year but hasn't driven a significant change in sales - suggesting consumers are doing their research, making their own price comparisons and shopping thoughtfully and cautiously.
Shoppers are tipped to spend $6.36 billion across the four-day Black Friday/Cyber Monday weekend (November 24 - 27), up 3.0% from last year according to research by the ARA, in partnership with Roy Morgan.
The increased competition for the consumer dollar will be a win for shoppers, with global discounts predicted to reach an average of approximately 30% across the Black Friday-Cyber Monday Weekend.
This Black Friday-Cyber Monday, retailers will also harness the power of artificial intelligence to drive sales, with 29% of online orders in Australia tipped to be influenced by AI according to Salesforce research.
ARA CEO Paul Zahra said despite an expected subdued broader pre-Christmas spending period, the growing popularity of Black Friday will give retailers a much-needed boost to the holiday shopping season.
"The Black Friday sales are the perfect opportunity for shoppers to get a great deal at a time when every dollar counts.
"As the country continues to be gripped by a cost-of-living crisis, the importance of Black Friday and Cyber Monday will be more significant than ever before," he said.
"Despite a lukewarm spending projection for the pre-Christmas period, Black Friday this year is set to be record-breaking, as consumers seek out bargains amid intense financial pressure.
"The Black Friday sales are an ideal time to grab a bargain and shop early ahead of the pre-Christmas rush.
"Some retailers have already started their Black Friday Sales ahead of this weekend in a move to entice early Christmas shoppers. We expect by the end of November more than half of the gift shopping in Australia would have been completed. It's the season to shop early to take advantage of the promotions and have your gift list completed for a stress-free Christmas.
"Retailers are well aware of the economic pressure being felt across the nation, and this increased competition will drive significant discounts."
Broader pre-Christmas spending in 2023 is tipped to be broadly in line with last year's results as shoppers continue to tighten their belts.
Jane Brown, Area Vice President, Salesforce ANZ:
"Aussies are getting savvy with their spending and hunting for the best value deals this Christmas."
"Now is the time for retailers to stand out from the pack with personalised product recommendations and loyalty programs which deliver real value for customers in new ways."
"Embracing predictive and generative AI to offer sophisticated recommendations will help retailers be more productive and efficient, while delivering the personalised experience customers demand."
Forecasts by the Australian Retailers Association (ARA), in conjunction with Roy Morgan, predict $67.1 billion will be spent in the November to December 24 Christmas trading period (up 0.6% from 2022).
Explore further by visiting Salesforce's Shopping Insights HQ for real-time Cyber Week results.
