Australian retailers are increasingly relying on Boxing Day sales to clear stock after a robust pre-Christmas period. However, the supremacy of Boxing Day as the nation’s biggest shopping event has been overshadowed by the US-imported Black Friday.
In Melbourne, fewer than 20 customers arrived at Myer Bourke Street before 7 a.m., with many shoppers noting a decrease in foot traffic in the CBD compared to previous years. Traders are hopeful that customers will venture out later in the day. Meanwhile, in Sydney’s CBD, areas like Pitt Street Mall saw a gradual increase in crowds, but the numbers fell short of historic Boxing Day levels, as the trend towards online shopping continues to grow.
Despite the shift, Boxing Day still attracts savvy shoppers like Suzanne Baldwin, who arrived in Melbourne from Christchurch, New Zealand, with a budget of $500 to $1000. Her shopping spree was part of a four-day holiday primarily focused on shopping and watching cricket.
The Rise of Black Friday
The prominence of Boxing Day has been eclipsed by the Black Friday sales period. Australians were expected to spend $1.6 billion on Boxing Day alone, a 4.3% increase from last year, and up to $3.83 billion in the week following Christmas, according to the Australian Retailers Association. However, spending leading up to Black Friday reached an estimated $39 billion, with nearly $7 billion spent between Black Friday and Cyber Monday.
Research from Monash University highlights how Black Friday has expanded into a month-long discounting period, reshaping consumer spending habits. Fleur Brown, chief industry affairs officer at the Australian Retailers Association, noted an increase in online traffic, indicating that customers were researching prices and stock levels before heading to stores.
“We are still seeing the majority of sales happening in-store, but a lot of that research happens earlier than that,” Brown said. “They’re very focused when they go in-store, more so than historically when you have that mad rush to just grab anything that moves.”
Impact on Small Businesses
The extended sales period has raised concerns among small business owners about the pressures of offering significant discounts. The Council of Small Business Organisations Australia has expressed worries about the toll on smaller retailers, with some claiming they must sell at a loss to compete.
Abbie Siegel, owner of Paint n Powder, a decades-old independent perfume and beauty shop in Melbourne, stated that while Boxing Day marks the start of their biggest sales period, they can only afford to offer discounts for five days.
“We do what we can to compete and to stay relevant, but there is a limit before you end up going backwards because you’re trying to compete with the big boys,” Siegel explained.
Boxing Day in Major Retail Hubs
Despite the challenges, Boxing Day remains a significant event for major shopping centers. Melbourne’s Chadstone Shopping Centre, the largest in Australia, prepared for 160,000 customers over 16 hours, a notable increase from Black Friday and Christmas Eve figures. The center increased its security and traffic management efforts to accommodate the influx.
David Jones anticipated 600,000 customers and 28,000 online orders on Boxing Day. Monique Murray, manager of the Melbourne flagship store, noted that Boxing Day shoppers are more focused on clearance sales for personal indulgence rather than Christmas shopping.
At Myer in Melbourne’s Bourke Street, staff braced for 355,000 transactions, with peak times seeing 700 transactions per minute. Beauty, women’s fashion, and homewares were among the most discounted categories.
The Future of Boxing Day Sales
The shift in consumer behavior indicates a changing landscape for traditional retail events. While Boxing Day continues to draw crowds, the growing preference for online shopping and the extended discounting period initiated by Black Friday are reshaping the retail calendar.
As the retail industry adapts to these changes, both consumers and businesses will need to adjust their strategies to navigate the evolving market dynamics. The future of Boxing Day sales may depend on how well retailers can integrate in-store experiences with the convenience of online shopping.
For shoppers like Alaina Demiris, Boxing Day remains a cherished tradition, offering a chance to enjoy a day out with family while taking advantage of post-Christmas sales. “It’s a whole experience, we have lunch and we have our coffees, it’s just a day together,” she said.
