Australians expected to spend $10.7b in end-of-financial-year sales

Spending growth is expected to slow to 1.9% well below inflation.

About 6.1 million Australians, or 26% of the population are expected to shop during end-of-financial-year (EOFY) sales, with total spending tipped to reach $10.7b, according to data from the Australian Retail Council and Roy Morgan.

The report said that spending growth is expected to slow to 1.9% well below inflation as Australians remain cautious despite widespread discounting.

Clothing footwear and accessories remain the most popular category at 34% followed by household appliances and white goods at 15% and electronics and technology products at 12%. Online shopping is expected to account for 44% of all EOFY spending unchanged from last year.

Fleur Brown, chief industry engagement officer at the Australian Retail Council, said the data reflects growing financial pressure on households.

She said consumers are still attracted to discounts, but remain cautious, adding that spending growth is “modest” and signals Australians are “carefully managing every dollar.”

The research showed younger households in the 35–49 age bracket are expected to spend less than both younger and older consumers, averaging $1,464 during the sales period.

In comparison, those under 35 are expected to spend $1,946, whilst Australians aged 50–64 are forecast to spend $1,993.

Despite stable participation overall, around three million Australians who shopped during last year’s EOFY period do not plan to take part this year.

Amongst those still intending to shop, 37% expect to spend more than last year, 36% about the same, and 27% less—an increase in the proportion planning to cut spending.

Brown said retailers are being squeezed by rising costs whilst consumers demand deeper discounts,

“Retailers are working incredibly hard to deliver value, but continue to face rising costs across wages, leasing, transport, energy and supply chains,” she said.

Brown added that the gap between rising business costs and consumer expectations is becoming harder for retailers to manage, calling for government action to reduce regulatory and administrative burdens.