In a surprising twist to the traditional retail frenzy, Australians spent a staggering $23.8 billion during the Black Friday to Cyber Monday sales period, according to an analysis by CommBank iQ. This figure marks a 19.5% increase compared to typical fortnightly spending, but the nature of the purchases has shifted significantly.
Rather than focusing on conventional retail items or stocking up on Christmas gifts, Australians directed their spending towards travel and discretionary services. Travel expenditures soared to $2.2 billion, an 8.4% increase, while discretionary services, including dining and entertainment, surged by 8% to $3.7 billion.
Shifting Consumer Preferences
CommBank iQ’s chief executive, Makenna Ralston, highlighted the evolving nature of Black Friday spending. “The strong uplift in travel and discretionary items like dining and entertainment indicates Australians are increasingly using the event as an opportunity to plan and invest in holidays and leisure activities, not just make traditional retail purchases,” she said.
Ralston also noted a significant shift towards online shopping, which accounted for much of the spending increase. Online sales grew by 9.3% compared to the previous year’s Black Friday period, while in-store sales saw a modest rise of 2.3%.
“The shift online is accelerating, and customers are becoming more value-driven and experience-oriented,” Ralston added. “Retailers need to understand these nuances so they can refine their channel mix, tailor their promotions and deliver the convenience and relevance shoppers now expect.”
Despite the growth in online shopping, it still represented only about a third of all transactions, with online sales reaching $8 billion and in-store sales climbing to $15.8 billion.
Economic Context and Consumer Behavior
Belinda Allen, Commonwealth Bank’s head of Australian economics, provided additional insights into the changing consumer behavior. According to Allen, recent years have seen a shift in spending patterns, influenced by economic factors such as tax cuts, a robust labor market, and interest rate adjustments.
“Over the course of 2022-2024, the pattern was people would sacrifice (ahead of big purchase items) with the cost of living,” Allen explained. “But 2025 has looked very different — we’ve seen very consistent spending growth as we haven’t seen strong months and then weak months in spending patterns.”
Allen emphasized that the ability to spend, rather than the specific items purchased, is what matters most. “What we’ve seen each month is consumers make different choices around what they will spend on, so this month it was concerts, the last couple of months it was communications and digital, and prior to that it was eating and drinking out,” she said.
Future Economic Implications
Looking ahead, the Commonwealth Bank has adjusted its economic forecasts, anticipating a rise in interest rates when the Reserve Bank of Australia convenes in February 2026. This potential increase could influence consumer spending patterns further, as households reassess their financial strategies.
The recent Black Friday spending spree underscores a broader trend of Australians prioritizing experiences and leisure over traditional retail purchases. As retailers adapt to these changing preferences, the landscape of consumer spending in Australia continues to evolve, reflecting both economic conditions and cultural shifts.
As the nation moves into the new year, the focus will likely remain on how these trends develop and what they mean for the broader economy and retail sector.
