Australians are heading into Black Friday Cyber Monday (BFCM) weekend with bigger wallets and higher expectations, according to Shopify’s latest Holiday Retail Report.

Shoppers plan to spend an average of A$324, up 43% from last year, while 78% of retailers feel more confident than in 2024 and 76% expect stronger sales.

The report highlights a shift towards intentional spending.

Over half of consumers are setting clear budgets, 27% plan to start shopping earlier, and nearly 40% admit sticking to a budget remains a challenge.

High spenders – those expecting to spend over A$1,990 – are even more likely to begin their shopping early.

Shopify (Image: Sourced from Unsplash)

Retailers are responding with smarter strategies.

Nearly half (47%) say personalised offers convert one-off shoppers into repeat customers, while 41% plan to offer free gifts or tailor shopping experiences.

Fast delivery, local support and easy access to deals are also top priorities for consumers.

AI is increasingly shaping the holiday season.

Around 61% of Australians plan to use AI for tasks such as finding deals or personalised recommendations, while 86% of retailers view AI features positively and are investing in AI-driven shopping assistants

Yet trust remains an issue, with 72% of Australians expressing caution, and 78% preferring to buy from real people when possible.

Hybrid shopping continues to dominate, with 38% planning to split purchases evenly between online and in-store, and 50% preferring online for smaller items but in-store for larger purchases.

Checkout friction remains a dealbreaker, with 52% abandoning carts due to complicated processes.

“Shoppers are entering the season with optimism, clear budgets, and high expectations,” said Shaun Broughton, Shopify APAC and Japan Managing Director.

The SMB survey was conducted among 7,500 owners and business decision makers, including 500 in Australia. Respondents surveyed were from companies with less than 1,000 employees.