Bankwest’s Spend Trends analysis of the Black Friday-Cyber Monday sales has revealed a tale of mixed fortunes for Western Australians, who, while seizing upon the imported retail hit, did so in far fewer numbers than in 2023.
Bankwest’s Spend Trends tracks WA customer credit and debit activity to identify insights into responses to economic conditions, with a special Black Friday analysis showing increased spending, but not to 2023 levels.
Bankwest analysed the fortnightly period that took in the extended Black Friday and Cyber Monday sales that are now common in Australia, comparing the data with a prior non-sales fortnight and the corresponding 2023 period.
The results showed a dramatic increase from the prior fortnight in the number of customers hitting the shops – more than double (111.7%) – but even Black Friday could not disguise the cost-of-living impacts on the community.
The year-on-year comparison period showed the number of customers taking advantage of the sales was down five per cent (-5.2%), with the volume of transactions stable at one per cent.
It was also telling that, despite the number of customers being down and volume of transactions stable, the average value of transactions had surged almost 10 per cent (8%) – highlighting the sticky cost-of-living.
The result meant fewer customers were spending but, when they were, costs were forcing them to fork out more.
The Spend Trends figures also revealed what Western Australians could expect beneath the Christmas tree.
Department Stores (210%), Electric Appliance (197%), Sporting/Toy Stores (196%), Clothing Stores (187%), and Discount Stores (130%) all experienced twice the number of customers compared to the week prior to Black Friday.
Those five sectors unsurprisingly also comprised the Top 5 for volume of transactions, and the growth in average value of transactions fortnight-on-fortnight also suggested customers had switched to gift-giving mode.
Electric Appliance (29%), Other Retail (24%), Department Stores (19%), Discount Stores (18%), and Education (16%) made up the top sectors for value increases, but year-on-year told a different story.
Only six of the 25 sectors monitored experienced year-on-year growth in the number of customers spending, with only half having increased in the volume of transactions.
Bankwest General Manager Products Peter Bouhlas said: “Bankwest’s Spend Trends Report has become a valuable monthly barometer for how Western Australians are managing the ongoing financial conditions.
“We’ve seen spending retreat every month this year when compared to the corresponding period from 2023 and the Black Friday analysis is no different, with significant increases heading into the sales offset by a drop year-on-year.
“We can also see that Western Australians are contending with increasing costs across most sectors, with the top of that list dominated by retailers we generally associate with gift-giving, such as Electric Appliance stores.
“The significant increase in spending across the Black Friday fortnight compared to the prior period could also speak to the challenges some people are experiencing, as they try to make their dollar stretch further during sales.
“Holiday periods are a wonderful time of the year for many people, but we also know from working closely with our community partners such as Anglicare WA that they can be challenging and stressful for others, particularly now.
“We urge any customers experiencing financial difficulties – or those concerned they might in future – to contact Bankwest, so our dedicated colleagues can work with their individual circumstances and provide the help needed.”
