Record Black Friday Spend Expected
Australian Black Friday spending is set to reach almost seven billion dollars this year, showing how quickly shopping habits are shifting as we head into the holiday season. Surveys from the Australian Retailers Association and Roy Morgan point to a four percent lift from last year, with around six million Australians planning to take part. Women make up a slightly larger share of shoppers, however men tend to spend more on themselves than on gifts. The average planned spend is about $804 per person, which reflects cautious confidence as people continue to manage higher living costs.
Low prices, strong discounts, and the chance to save on Christmas gifts remain the biggest drivers. Clothing, shoes, toys, books, and home décor sit at the top of wish lists. According to Deloitte, retailer participation is also rising, with forty four percent expected to take part, up from forty one percent last year. This boost to cash flow is important for discretionary retailers and small businesses, especially after a long period of soft trading conditions.
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AI’s Growing Role in Retail
Retailers are responding by strengthening digital channels and using AI tools to personalise offers and manage stock more efficiently. More businesses are turning to AI chatbots, demand forecasting systems, and targeted promotions to capture attention during peak shopping periods. AI also gives retailers better insight into customer behaviour, which helps them adjust marketing, improve user experience, and create smoother journeys online and in-store.
Signs of Retail Sector Recovery
City Chic’s recent improvement shows how retailers are adapting to a more competitive environment. As expectations rise for smoother online experiences and curated products, AI is becoming a core tool. It helps retailers react faster to trends and respond to feedback, which is increasingly important for building loyalty.
Consumers are also becoming more deliberate with their spending. Many now wait for major sales events like Black Friday before making bigger purchases, which shows a clear shift toward value, reliability, and trusted brands. This behaviour is encouraging for investors who are watching for signs of retail recovery supported by technology.
Investor Takeaways
For investors, the mix of recovering retail demand and growing AI adoption offers real opportunities. Understanding spending patterns during Black Friday, as well as tracking which companies are investing in modern retail technology, gives a strong read on the health of Australia’s consumer economy this season. Strong performance also supports local employment and helps build broader economic resilience, which adds another layer of value.