Black Friday spending slows amid cost-of-living pressures – NAB

With Black Friday and Cyber Monday around the corner, early data suggested Australians may be scaling back spending amid ongoing cost-of-living pressures.

NAB reported that spending for the first half of November totaled nearly $3 billion, up just 0.6% from the previous month but down 1.7% compared to the same period last year.

“Right now, most Australians are focusing on prioritising the essentials,” said NAB executive Kylie Young. “Typically, Black Friday has been about treating yourself to new technology or updating your wardrobe, but many are spending more time comparing prices at petrol stations than on wide-screen televisions.”

Consumers turning to savings goals for Christmas

While overall spending appears subdued, NAB has observed an uptick in customers setting “Christmas savings” goals in their banking apps, suggesting some shoppers may still leverage Black Friday to get ahead on holiday shopping.

“It’s absolutely possible that people may decide to kick into gear and get ahead on their Christmas shopping over the Black Friday and Cyber Monday period,” Young said.

Shopping tips to beat the rush and stay safe

For those planning to shop the sales, Young shared key strategies to avoid overspending or falling victim to scams:

1. Set a budget – Stick to a pre-planned budget to control spending and avoid unnecessary splurges
2. Plan ahead – Make a list of essentials and research deals in advance to minimise impulse purchases
3. Watch for Scams – November sees the highest volume of card-related scams. Verify websites and deals carefully
4. Leverage loyalty programs – Use reward points for extra savings and ensure you collect loyalty points when purchasing
5. Shop local – Supporting local businesses helps avoid delivery delays and ensures unique, timely gifts

Australians spent big last year

In 2023, Australians spent an estimated $8.7bn during Black Friday and Cyber Monday.

However, this year’s early data suggests spending may be more restrained, as economic pressures continue to weigh on consumer confidence.

“By planning ahead and shopping smart, Australians can still make the most of the sales without stretching their budgets,” Young said.

Visit NAB News to view the announcement.

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