Black Friday sales boost short-lived as cost-of-living pressures weigh on December spending

There was a sharp drop in consumer activity in Western Australia during December as economic pressures weigh on households, Bankwest’s latest Spend Trends report has found.
The report, which tracks credit and debit activity among Bankwest customers in the state, showed year-on-year and month-on-month declines in spending during December.
While November’s Black Friday and Cyber Monday sales drove a spike in consumer activity — with spending more than doubling during that fortnight compared to non-sale periods — the momentum did not carry into December.
Bankwest’s separate analysis of the Black Friday-Cyber Monday sales showed that while Western Australians embraced the popular shopping event, fewer people participated compared to 2023.
New Spend Trends data revealed a 5.9% year-on-year drop in the number of customers making purchases during December, while transaction volumes fell by 2%. Month-on-month figures from November to December showed similar declines, with the number of customers spending (-1.5%), transaction volumes (-2%), and transaction values (-2%) all decreasing.
Key sectors saw notable pullbacks in spending. Year-on-year, electric appliance retailers recorded a 15% decline in customer activity, while vehicle-related spending, including auto accessories, fell by 12%. On a month-to-month basis, sectors tied to gift card purchases, such as hardware and electric appliances, saw the largest drops in transaction volumes, down 22% and 20% respectively.
In contrast, hospitality saw a boost as the festive season took hold. Hotels and motels in WA reported a 25% month-on-month rise in transaction volumes. However, fewer residents travelled for the holidays compared to the previous year, with spending at service stations declining 10% in customer numbers and 14% in transaction volumes year-on-year.
The report also underscored the growing impact of cost-of-living pressures. Despite fewer customers making purchases and lower transaction volumes, transaction values rose 9% year-on-year, suggesting that consumers are paying more while buying less.
Demographically, younger Western Australians drove spending in December. Gen Z customers increased their spending by 3.8%, with transaction volumes and values jumping 12% compared to the previous year. By contrast, other age groups reduced their activity, with Baby Boomers seeing the largest declines in customer numbers (-8.5%) and transaction volumes (-7%).
Peter Bouhlas (pictured above), general manager of products at Bankwest, noted the dual impact of Black Friday sales and economic challenges on consumer behaviour.
“The latest Spend Trends report highlights the significant influence of Black Friday sales on consumer activity, followed by a notable pullback in December as households face ongoing cost-of-living pressures,” Bouhlas said.
“We’re seeing fewer people spending and making fewer transactions, yet the higher transaction values year-on-year indicate that Western Australians are paying more for the goods and services they purchase.
“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.”
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