The Great Aussie
Boxing Day Sale

The Great Aussie
Boxing Day Sale

Enrique Gonzalez
July30th, 2016

Every year Aussies spend big at the register leading up to Christmas (November and December) and if you read my previous blog Jingle those retail Christmas Bells you will see that we are expected to spend somewhere in the vicinity of $8.8 billion on presents this year, which is $100 million down from the previous year.

Could this mean that we as Australians are saving a little “lolly” in the bag, ready for the Boxing Day Sales?  Boxing Day 2015 we spent something in the range of $2.5B and this year there is an expectation we will spend in excess of $2.6B which would make up for the pre-Christmas difference of $100M from 2015.

So if the sales numbers are as big as predicted then what are we buying these presents for?  Are we buying:

  1. For Christmas 2017?
  2. This Christmas but actually giving gifts post-Christmas?
  3. Now, wrapping gift cards in preparation for the big sale (note to self, top idea) and hoping the person gets exactly what you want, at your budget?
  4. Just because it’s on sale?

What does this mean to the Australian economy and what does this mean to retails?  I believe that if all these numbers are correct we are still spending the same amount at Christmas, but we are a lot savvier and less impacted by the impulse sales items in retail outlets.  So, what impact does this have on our retail environment, specifically relation to the smaller retailers and not the large or multinational retail chains?

Potential Boxing Day Sale Concerns

  1. Small retailers need to purchase large volumes of product to be able to compete on price and variety. This could hurt them.  If the store does not make sales to cover the invoice for these purchases it would affect the store dramatically.  Whilst a large retailer like Myers, could implement an alternate strategy that would minimise the loss.
  2. Smaller retailers risk factor during Christmas sits higher than any other time of the year as the concern is that consumers will stick to the large retailers and not the place they frequent throughout the year.
  3. Then finally we need to consider if consumers will go to a Strip location or the big shopping centres and retailers. In major cities like Sydney, Melbourne and Brisbane consumers will frequent both.  Yet in the suburbs throughout the year, consumers may be inclined to shop around and get the better price.  But during the “silly season” we are looking for convenience as everyone is shopping for gifts at the same time.

So what does the Boxing Day Sales actually represent?  I feel they are the great equaliser.  What does that mean? We pay close to full retail prices throughout the year and once a year we actually get genuine, quantified and noticeable savings and discounts on current model items we want.  The only factor that you need to consider is that you need to get in early and not miss out, usually these products will have a limited number, especially when there are a variety.

I hope that you’ve had a great Christmas and are building towards a great New Year. And most of all, I hope you score well during tomorrows BOXING DAY SALES and don’t forget…my favourite colour is blue.


The Great Aussie Boxing Day Sale
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The Great Aussie Boxing Day Sale
The Boxing Day Sale is fast approaching. Will you be among the many to pick up a bargain? Find out what impact these sales have on our small retailers.
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