Analysis from CommBank iQ reveals a remarkable surge in spending by Australians, totaling $23.8 billion over the two weeks encompassing the Black Friday to Cyber Monday sales period. This represents a significant 19.5 percent increase compared to typical fortnightly spending.
Interestingly, Australians did not focus their spending on traditional retail or pre-Christmas gifts. Instead, the boom was driven by travel, which soared to $2.2 billion, marking an 8.4 percent increase, and discretionary services, which surged by 8 percent to $3.7 billion.
Changing Consumer Preferences
CommBank iQ’s chief executive, Makenna Ralston, noted that the data indicates an evolution in how Australians approach Black Friday. “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 highlighted a shift in spending patterns, with online sales being a significant contributor to the overall increase. Online sales grew by 9.3 percent compared to last year’s Black Friday period, while in-store sales saw a modest rise of 2.3 percent.
“The shift online is accelerating, and customers are becoming more value-driven and experience-oriented. 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,” Ralston emphasized.
Online vs. In-Store Dynamics
Despite the growth in online sales, they still accounted for only about a third of all transactions. Online sales ballooned 9.3 percent to $8 billion, while in-store sales rose 2.3 percent to $15.8 billion. This trend reflects a broader shift in consumer behavior, as noted by Commonwealth Bank’s head of Australian economics, Belinda Allen.
Allen previously told NewsWire that consumer spending patterns have evolved significantly in recent years. “Over the course of 2022-2024, the pattern was people would sacrifice (ahead of big purchase items) with the cost of living,” Allen said. “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.”
Economic Factors Influencing Spending
According to Allen, a combination of tax cuts, a robust labor market, and three interest rate cuts have contributed to improving household financial positions. “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 explained.
Allen emphasized that the ability to spend is crucial, not necessarily the specific items being purchased. This shift in consumer behavior has prompted the Commonwealth Bank to adjust its expectations, with a belief that interest rates will rise when the Reserve Bank of Australia next meets in February 2026.
Looking Ahead
The recent spending trends underscore a broader transformation in consumer priorities and the retail landscape. As Australians increasingly prioritize experiences and online convenience, retailers must adapt to these changing dynamics to remain competitive. The upcoming interest rate decisions will likely further influence consumer spending patterns, shaping the economic landscape in the coming months.
As the Black Friday period continues to evolve, it serves as a barometer for broader economic trends and consumer sentiment, offering valuable insights into the future of retail and spending in Australia.
