As consumers rushed to take advantage of Black Friday deals over the weekend, new data released shows that even prior to that period, consumers already began spending more than they did last year in the weeks leading up to the mega sales weekend.
Retail sales throughout October were higher than the same period last year, with the Australian Bureau of Statistics (ABS) confirming a 3.4% increase year on year.
ABS category ‘Other retailing’ – which includes cosmetics, sports and recreational goods – continued to see strong growth in October (up 8.4% year-on-year) along with household goods (up 3.3%) and the staple category of food (up 3%).
The non-food industries had significant rises for both other retailing (+1.6 per cent) and household goods retailing (+1.4 per cent).
“The rise in discretionary spending was driven by online discounting events while people also spent more on electrical goods, particularly televisions and other audio-visual equipment,” said Robert Ewing, ABS head of business statistics.
The retail growth in October comes on the heels of growth of 0.1 per cent in September 2024 and 0.7 per cent in August 2024.
“After a steady result last month retailers told us that sales activity grew in October ahead of the Black Friday sales. The stronger than usual October month saw some retailers enticing buyers to spend early with discounting, particularly on discretionary items,” said Ewing.
Retail turnover saw growth across the country with all states and territories rising, except for the Northern Territory (-0.5 per cent).
The strongest percentage rises this month were seen in South Australia with 1.3 per cent, Tasmania at 1.1 per cent, and Victoria with 0.9 per cent.
Australian Retailers Association (ARA) Chief Industry Affairs Officer Fleur Brown said that while the October retail growth was welcome news, 2024 remained challenging for retailers.
“Increased costs of doing business, interest rates, retail crime, supply chain demands and more have continued alongside subdued consumer spending,” said Brown.
She called for the Reserve Bank of Australia (RBA) to introduce cash-rate relief measures to ease the pressure on businesses, especially for small businesses which operate on tighter margins.
With the ABS’s most recent inflation data report, the RBA is unlikely to reduce cash rates for the remainder of the year.
Brown noted that this year, consumers began picking up deals before the Black Friday weekend. “In a trend that shows shifting consumer habits due to the cost-of-living crunch, some Australians used October to plan for the holiday season early by beginning to stock up on gifts and make their purchases earlier than last year to assist with budgets.
“Retailers are now pulling out all the stops for peak season trading – the period where many discretionary retailers make up to two-thirds of their annual profits.”
