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.”