Despite Black Friday sales, Australian retail sales rose by less than expected in November. Sales advanced 0.8% in November compared to the prior month, according to figures from the Australian Bureau of Statistics. That figure came in under the forecast for a 1% gain. It follows a downwardly revised 0.5% increase in October.

Year-on-year though, Australian retail sales increased 3% in November. Shoppers spent nearly $37 billion across the country in that month, boosted by the Black Friday sales.

“Black Friday sales events proved once again to be a big hit, with widespread discounting and higher spending across all retail industries,” said Robert Ewing, ABS head of business statistics.

 

As ChannelNews has previously reported, Black Friday sales in some instances are now spread over several weeks among some retailers, rather than just a weekend filled with mega sales.

“The popularity of Black Friday sales continues to grow with promotional activity now stretching across the entire month of November, not just solely focused on the Black Friday weekend,” noted Ewing.

However, retailers in the country have come under scrutiny by the Australian Competition and Consumer (ACCC) which recently announced an investigation into reported misleading sales claims over the Black Friday sales.

Following consumer reports about a range of concerns during the recent Black Friday sales period surrounding the veracity of claimed discounts, the ACCC conducted a sweep of sales advertising by Australian businesses both online and in-store.

It is now examining whether retailers were offering discounts as advertised and whether they were genuinely discounting products to the extent that they claimed to.

In November, all retail categories from food to department stores and clothing showed growth. Department stores led the gains, up 1.8%, followed by clothing, food and accessories, which rose 1.6% and cafes, restaurants and takeaways, rising 1.5%.

The Australian Retailers Association has previously expressed its disappointment with the Reserve Bank of Australia (RBA) refusing cut the cash rate for well over a year. “We are pleased to see such a solid spending result in a challenging year, especially given the Reserve Bank of Australia’s decision to again keep the cash rate on hold,” said Australian Retailers Association Chief Industry Affairs Officer Fleur Brown on Thursday after the ABS published its latest report. “The growing popularity of Black Friday gave retailers some much-needed reprieve in November with shoppers seeking out bargains amid intense financial pressure.”

Retail sales are an important factor that policymakers consider and it has now risen for eight consecutive months, giving rise to the hope that the RBA may consider a rate cut over the next few weeks that would in turn ease pressure on retailers – and consumers.