The Rise and Rise of Black Friday Sales

AUTHOR

NORRELLE GOLDRING
Senior Research Director

You are not imagining it. Black Friday sales in Australia are starting earlier and getting bigger, becoming one of the most anticipated shopping events of the year and now deeply ingrained in the Australian retail landscape. Here is a short rundown of the rise of Black Friday in Australia: its origins, evolution, shopper behaviour, and likely future outlook.

Origin and Adoption of Black Friday Sales in Australia

Black Friday originated in the United States in the 1960s, marked by massive discounts and heavy foot traffic as it falls right after Thanksgiving, the fourth Thursday in November. Black Friday quickly became one of the biggest shopping events in the USA, drawing in millions of shoppers eager for deals as the holiday season approached. Recognising its popularity, the US National Retail Federation introduced ‘Cyber Monday’ in 2005 as an online shopping counterpart to encourage digital sales.

In Australia, Black Friday did not immediately gain traction. For decades, the Boxing Day sales were the primary shopping event of the year. However, the rise of e-commerce and exposure to international retail trends played a significant role in the adoption of Black Friday in Australia. By the early 2010s, Australians started shopping on US-based websites for Black Friday deals, a practice that influenced local retailers to jump on board and offer their own discounts.

The tipping point came with the arrival of Amazon in Australia in 2017. Amazon’s entry brought global shopping trends with it, including Black Friday and Cyber Monday. Other major Australian retailers quickly followed, with popular brands like JB Hi-Fi, The Iconic, Myer, and David Jones joining the Black Friday movement. These retailers saw the sales potential and, by extension, the opportunity to prevent Australian consumers from spending their dollars overseas.

Interestingly, there isn’t the polarisation of opinions in Australia around the American origins of Black Friday as there is with Halloween. Perhaps this is due to shoppers’ pragmatism and its positioning as a pure sales event.

Size, Evolution and Impact of Black Friday Sales in Australia

Since its adoption, Black Friday has grown rapidly in Australia. In 2023 alone, Australians spent AUD$6 billion during the Black Friday and Cyber Monday shopping period¹.

Black Friday has also evolved from being just a one-day event to a multi-day affair, often starting early and extending over the weekend until Cyber Monday. In some cases, retailers begin promotions earlier, creating a ‘Black Friday week’ or ‘Cyber Week’. Or even earlier. At time of writing in mid-November, some retailers were already spruiking ‘early Black Friday sales’. This extended sales period allows retailers to capitalise on consumer interest and spread out sales traffic, giving consumers more time to find deals.

The timing of Black Friday in late November has proven ideal for Australians, chiming nicely with the Christmas gift shopping season. This pre-Christmas timing filled a gap in the Australian retail calendar, as traditional seasonal sales happened after the holiday season, namely on Boxing Day.

But as more Australians complete their holiday shopping during Black Friday, the urgency, excitement, and available shopping budget, around Boxing Day have diminished somewhat. Boxing Day remains a significant shopping event, but with many discounts already offered in November, some consumers feel less inclined to wait until December 26 for sales, and the extended sales period pre-Christmas is leading to sales fatigue for some.

Retailers have adapted by offering equally competitive discounts across Black Friday and Boxing Day, sometimes focusing on different product categories to maintain consumer interest in both events. Additionally, the rise and increasing dominance of online shopping during Black Friday has drawn some attention away from the in-store focus of Boxing Day, which traditionally saw long lines and crowded stores such as the famous queues outside Myer.

Shopper Behaviour and Budgeting for Black Friday Sales

Australian shoppers have become strategic in their approach to Black Friday shopping. Many now set specific budgets for the event, aware of the importance of managing expenses, especially with Christmas just around the corner.

A significant portion of Australians use Black Friday as an opportunity to start or complete their Christmas shopping. Around 40% of Australians surveyed by McCrindle indicated that Black Friday and Cyber Monday are key times to buy Christmas gifts, highlighting the event’s integration into the holiday season².

Shoppers are becoming increasingly research-oriented, spending time to compare prices and identify the best deals before Black Friday even begins. This trend has been bolstered not only by ongoing cost-of-living related issues, but by the prevalence of online shopping and deal sites, making it easy for shoppers to access information on promotions and discounts.

For many, Black Friday has already become an annual ritual that involves planning and budgeting, aiming to maximise savings across multiple categories particularly electronics and appliances, fashion and beauty, toys and games, and homewares.

With the rise of Black Friday, Australians are now taking a more balanced approach to their spending across the holiday season. Many shoppers save specifically for Black Friday or set a spending cap to ensure they stay within their means. The availability of online sales during Black Friday also encourages shoppers to make planned purchases, allowing them to avoid the rush, stress and expense associated with last-minute Christmas shopping.

The Outlook: Will Black Friday ‘Top Out’?

The outlook for Black Friday sales in Australia remains optimistic, with projections for spending to exceed A$6.7 billion in 2024, an increase of more than 5% over 2023³. The growing trend suggests that Black Friday sales may continue to expand as more Australians become familiar with the event and as more retailers participate.

Various factors are likely to support its continued growth, including the increasing integration of online shopping, competitive pressure among retailers, and the cultural shift towards early Christmas shopping. Economic conditions, however, will play a role in shaping the extent of this growth, as inflation, cost-of-living pressures, and changes in consumer confidence influence spending behaviour.

In the space of just over a decade, Black Friday has become a vital component of Australia’s retail calendar, driving billions in sales and reshaping Christmas shopping. The event’s strategic timing, combined with cultural shifts towards event-driven shopping, has helped it gain a firm foothold.

So, it won’t be long before Black Friday sales start immediately after Halloween.

---

REFERENCES:

¹ Black Friday sales Australia 2023: Dates and Best Tech Deals

² Australians spend billions ahead of holiday gift-giving

³ Black Friday sales a winner this Christmas as cost-of-living continues to bite | Australian Retailers Association