Retail Beauty recently reported that the Australian Retailers Association (ARA) is forecasting an $8.8 billion spend in the run-up to the end of the financial year. Shopper, the retail OOH business, has rubberstamped the prediction.
According to Shopper’s End of Financial Year 2022 study, almost 9 in 10 Aussie shoppers will hunt for bargains in EOFY sales this year.
Businesses might take a tax-driven approach to purchases, but Karissa Fletcher, chief marketing officer for Shopper, says that EOFY sales offer a major leg-up for brands.
Families are likely to spend 34 per cent more (an average of $717) during the 2022 EOFY sales, compared with the average consumer spend of $535, she says. “Meanwhile, most business owners (75%) spend more in the lead-up to tax time than other times of the year. This sale period presents brands with a unique opportunity to target both businesses and consumers with time-sensitive discounts. It’s also critical to build brand preference in the lead-up to key sales periods when competing for consumers attention is at its peak.”
Other interesting takeaways from the Shopper study reveal that 73 per cent of shoppers plan to buy a big ticket item over the next six months. Over a third – 34 per cent – are more likely to trial new brands and products around key sale events, as the risk associated with the purchase is lower compared to full-priced items.
There’s much to build on as June comes to a close, reports the Mastercard SpendingPulse. In spite of all the doom-laden media reports, Australian retail sales rose 7.8 per cent in May compared to the same month last year.
Most categories of retail enjoyed growth apart from apparel ( -0.2%), led by electronics ( +5.6%), home furnishings (+4.4%), groceries (+4.1%) and jewellery ( +1.6%).
Paul Zahra, CEO of the ARA welcomed the May figures. “A generation of home owners are experiencing their first interest hikes, while the cost of food and essentials are going up which is impacting family budgets. However, we are yet to see those cost pressures impact retail spending, which is a positive indicator that Australians in the short term will be able to withstand the current inflationary challenges.”
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