Retailers are expecting a $450 million sugar hit from Halloween on Thursday before an even bigger spending splurge during the black Friday and cyber Monday sales when almost half of all shoppers are tipped to buy their Christmas gifts.
Shoppers are set to spend a record $6.7 billion in the four days from November 29 to December 2, an increase of 5.5 per cent compared to the same time in 2023, according to Roy Morgan research.
Australian Retailers Association chief executive Paul Zahra said Australians wanted to enjoy the festive season while managing their household budgets.
Shoppers are set to spend a record $6.7 billion during four days of upcoming sales events. (Con Chronis/AAP PHOTOS)
"Shoppers are being savvier than ever with their dollars," he said.
"They're looking for the best value when it comes to buying presents for their loved ones, which is why sales events like black Friday-cyber Monday weekend are consistently growing in popularity."
Food was tipped to account for the lion's share of spending, with $28 billion in sales expected - up 4.2 per cent compared to 2023.Discretionary or non-food categories are forecast to record a more modest sales increase of 1.6 per cent compared to 2023's figures.
About $5.7 billion was expected to be spent on clothing (up 3.3 per cent), $10.8 billion on other retailing (up 4.7 per cent) - such as recreational goods, books and cosmetics - and $10.6 billion on hospitality (up 4.7 per cent).
Department store and household goods spending is predicted to decline, with expected sales of $3.6 billion (down 1.5 per cent) and $10.7 billion (down 3.8 per cent) respectively.
One in five Australians are expected to celebrate Halloween on Thursday. (Joel Carrett/AAP PHOTOS)
NSW shoppers are forecast to spend $21.9 billion while Victorian shoppers are tipped to spend $17.8 billion.
A survey of 2000 people found 49 per cent of consumers intended to do most of their holiday shopping during the black Friday-cyber Monday weekend.
Mr Zahra said most discretionary retailers would make up to two-thirds of their annual profit during the peak season trading period.
"Whilst the year-on-year growth projections remain modest, these figures in most categories are encouraging after another challenging year," he said.
Halloween sales have also increased compared to 2023, with many retailers reporting a boost of up to 20 per cent on ghoulish costumes, decorations and other themed merchandise.
Supermarkets reported a 25 per cent increase in pumpkin sales for Halloween, expected to be celebrated by one in five Australians.
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