Post-sales December decline points to cost-conscious West Aussies

14 January 2025

Bankwest’s latest Spend Trends report has reinforced Western Australians’ new found love affair with imported sales events, such as Black Friday, and highlighted the ongoing economic challenges faced by the community.

Bankwest’s Spend Trends tracks WA customer credit and debit activity to identify insights into responses to economic conditions, with the analysis of December spending showing year-on-year and month-on-month declines.

An analysis released previously by Bankwest showed spending surges during the Black Friday-Cyber Monday fortnight of sales, with the number of customers spending more than doubling (111.7%) on the non-sales period.

However, the latest data has shown the consumer sugar-hit dissipated post-sales during December, with the number of customers spending (-5.9%) and transaction volumes (-2%) significantly down year-on-year.

The month-on-month spending – from November to December – showed a similar trend, with the number of customers spending (-1.5%), the value of transactions (-2%), and the volume of transactions (-2%) all down.

Unique customer spend data highlighted the sectors in which consumers pulled back, with Electric Appliance retailers (-15%), and Vehicles (-12%), which includes auto accessories stores, leading year-on-year declines.

The sectors commonly associated with gift cards – Hardware and Electric Appliance – were also among the Top 5 in declines for month-on-month transaction volumes, falling 22 per cent and 20 per cent, respectively.

Conversely, the passing of the sales season to the holiday season proved a boon for WA’s pubs, with Hotels/Motels surging 25 per cent in transaction volumes from November to December.

The figures also suggested more Western Australians spent the 2024 holiday period at home compared to the previous year, with significant year-on-year reductions in Service Stations spend (-10% customers; -14% volume).

However, the cost-of-living challenges facing the community continued to be highlighted in transaction value data, with the year-on-year customer and volume declines offset by a significant nine per cent rise in transaction value.

The data also showed spending in December was driven by young Western Australians, with the number of Gen Zs spending up 3.8 per cent, and their transaction volumes and values surging 12 per cent year-on-year.

That was in contrast with other generations, all of which declined in the number of unique customers transacting and the volumes of those transactions, led by Baby Boomers (-8.5% customers; -7% volume).

Bankwest General Manager Products Peter Bouhlas said: “The latest Spend Trends report highlights the significant impact of Black Friday sales on consumer behaviour, as well as the after-effect of that sales period.

"Despite the initial boost from Black Friday, the data shows a decline in spending post-sales, indicating that consumers are becoming more cautious with their expenditures amid ongoing cost-of-living challenges.

"We can see in the year-on-year comparisons, notably the decrease in the number of customers spending and the transaction volumes, the challenges posed by the ongoing economic climate faced by the community.

“That situation is perhaps best highlighted by the year-on-year increase in transaction value, despite those decreases, showing that Western Australians continue to pay more, while purchasing less.

“We urge any customers experiencing financial difficulties – or those concerned they might in future – to contact Bankwest, so our colleagues can work with their individual circumstances and provide the support needed.”

Overall transaction change

  Number of customers transacting
(%)
Total volume of transactions
(%)
Average value of transactions
(%)
Month-on-Month
(Nov 24 v Dec 24)
-1.5
-2
-2
Year-on-Year
(Dec 23 v Dec 24)
-5.9
-2
+9
 
Number of customers transacting
(%)
Total volume of transactions
(%)
Average value of transactions
(%)
Month-on-Month
(Nov 24 v Dec 24)
-1.5
-2
-2
Year-on-Year
(Dec 23 v Dec 24)
-5.9
-2
+9

Where Western Australians are spending Month-on-Month

Sectors by volume of unique customers transacting
Biggest growth in number of unique customers transacting % Smallest growth in number of unique customers transacting %
Sporting/Toy stores
+28
Education
-42
Discount stores
+13
Airline
-11
Hotel/Motel
+10
Other transport
-9
Biggest growth in number of unique customers transacting
%
Smallest growth in number of unique customers transacting
%
Sporting/Toy stores
+28
Education
-42
Discount stores
+13
Airline
-11
Hotel/Motel
+10
Other transport
-9

Where Western Australians are spending Year-on-Year

Sectors by volume of unique customers transacting
Biggest growth in number of unique customers transacting % Smallest growth in number of unique customers transacting %
Airline
+11
Electric appliance
-15
Mail order
+3
Vehicles
-12
Travel agency
+2
Repair shops
-11
Biggest growth in number of unique customers transacting
%
Smallest growth in number of unique customers transacting
%
Airline
+11
Electric appliance
-15
Mail order
+3
Vehicles
-12
Travel agency
+2
Repair shops
-11

Month-on-Month top 5 sectors by ...

Biggest growth in volume % Smallest growth in volume % Biggest growth in value % Smallest growth in value %
Hotel/Motel
+25
Education
-28
Auto rental
+25
Repair shops
-23
Auto rental
+16
Hardware
-22
Education
+23
Hardware
-19
Sporting/Toy stores
+15
Other services
-20
Hotel/Motel
+14
Vehicles
-17
Biggest growth in volume
%
Smallest growth in volume
%
Biggest growth in value
%
Smallest growth in value
%
Hotel/Motel
+25
Education
-28
Auto rental
+25
Repair shops
-23
Auto rental
+16
Hardware
-22
Education
+23
Hardware
-19
Sporting/Toy stores
+15
Other services
-20
Hotel/Motel
+14
Vehicles
-17

Year-on-year top 5 sectors by ...

Biggest growth in volume % Smallest growth in volume % Biggest growth in value % Smallest growth in value %
Travel agency
+14
Service stations
-14
Travel agency
+12
Airline
-9
Pharmacies
+6
Repair shops
-8
Pharmacies
+10
Hardware
-8
Hotel/Motel
+3
Education
-8
Electric appliance
+9
Education
-6
Biggest growth in volume
%
Smallest growth in volume
%
Biggest growth in value
%
Smallest growth in value
%
Travel agency
+14
Service stations
-14
Travel agency
+12
Airline
-9
Pharmacies
+6
Repair shops
-8
Pharmacies
+10
Hardware
-8
Hotel/Motel
+3
Education
-8
Electric appliance
+9
Education
-6

Generational snapshot

Year-on-year growth values by generation from Dec 23-Dec 24

  Number of unique customers transacting
(%)
Volume of transactions
(%)
Average value of transactions
(%)
Gen Z
+3.8
+12
+12
Millennials
-6.4
-0.4
+11
Gen X
-5.9
-1
+11
Baby boomers
-8.5
-7
+5
 
Number of unique customers transacting
(%)
Volume of transactions
(%)
Average value of transactions
(%)
Gen Z
+3.8
+12
+12
Millennials
-6.4
-0.4
+11
Gen X
-5.9
-1
+11
Baby boomers
-8.5
-7
+5

Sector examples

Sector Examples
Airlines
Self-explanatory
Auto rental
Self-explanatory (general and commercial)
Clothing stores
Single-brand stores, as opposed to multi-brand department Store retailers
Department stores
Large department stores and chains, not including discount department stores
Discount stores
Discount department stores and budget lifestyle and homeware retailers
Electrical appliance
Whitegoods retailers, home entertainment stores, mobile and computing device outlets, computer games
Food stores/Warehouses
Includes grocery stores, as well as wholesale food distribution warehouses
Hardware
Hardware retailers and chains, landscaping specialists, home DIY retailers
Hotels/Motels
Self-explanatory
Other retail
Online marketplaces, online arms of bricks-and-mortar retailers, discount department stores, liquor stores
Other services
Courier services, public administration, newspaper subscriptions, roadside assistance companies
Other transport
Ride sharing companies, taxis, private and public paid parking
Pharmacies
Self-explanatory
Professional services
All types of insurance, waste disposal services
Quasi cash
Casino and gambling activities
Repair shops
Cobblers, tailors, electrical appliance repairs, watchmakers, mobile phone repairs
Restaurants/Bars
Self-explanatory
Service stations
Self-explanatory
Sporting/Toy stores
Non-digital game retailers, outdoor recreation stores, sporting goods, apparel and footwear outlets
Travel agencies
Self-explanatory (online and bricks-and-mortar)
Utilities
Typical utility services, streaming services
Vehicles
Automotive dealerships, automotive and car care accessory retailers, repairs and servicing
Sector
Examples
Airlines
Self-explanatory
Auto rental
Self-explanatory (general and commercial)
Clothing stores
Single-brand stores, as opposed to multi-brand department Store retailers
Department stores
Large department stores and chains, not including discount department stores
Discount stores
Discount department stores and budget lifestyle and homeware retailers
Electrical appliance
Whitegoods retailers, home entertainment stores, mobile and computing device outlets, computer games
Food stores/Warehouses
Includes grocery stores, as well as wholesale food distribution warehouses
Hardware
Hardware retailers and chains, landscaping specialists, home DIY retailers
Hotels/Motels
Self-explanatory
Other retail
Online marketplaces, online arms of bricks-and-mortar retailers, discount department stores, liquor stores
Other services
Courier services, public administration, newspaper subscriptions, roadside assistance companies
Other transport
Ride sharing companies, taxis, private and public paid parking
Pharmacies
Self-explanatory
Professional services
All types of insurance, waste disposal services
Quasi cash
Casino and gambling activities
Repair shops
Cobblers, tailors, electrical appliance repairs, watchmakers, mobile phone repairs
Restaurants/Bars
Self-explanatory
Service stations
Self-explanatory
Sporting/Toy stores
Non-digital game retailers, outdoor recreation stores, sporting goods, apparel and footwear outlets
Travel agencies
Self-explanatory (online and bricks-and-mortar)
Utilities
Typical utility services, streaming services
Vehicles
Automotive dealerships, automotive and car care accessory retailers, repairs and servicing

About Bankwest
Bankwest’s ambition is to be Australia's favourite digital bank. Bankwest provides great value home lending and secure, easy, and effortless personal and everyday banking solutions for customers across Australia. We support customers in doing their banking in the ways that suit them, with innovative digital solutions, an Australia-based 24/7 Customer Engagement Centre, and a passionate broker community. Bankwest is a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL/Australian credit license 234945.