Australians expected to spend big on Boxing Day as shoppers warned of deceptive sales tricks | Consumer affairs
Australians are predicted to spend $1.6 billion on Boxing Day sales as the consumer regulator warns shoppers that even major retailers are using deceptive sales tactics.
Revenue from Boxing Day sales on Friday is expected to rise by 4.3% compared to 2024, according to new data from Roy Morgan and the Australian Retailers Association (ARA).
Australians are expected to spend $3.832 billion from the week after Christmas to December 31, up 4.4% on last year, according to ARA.
Australian Competition and Consumer Commission deputy chairman Catriona Lowe encouraged consumers to focus on the final price, not the advertised discount or promotion, to assess whether they are getting a good deal.
“We are concerned that despite numerous warnings, some retailers are still using a variety of tactics to misrepresent the size, scope and duration of sales to consumers,” he said.
The regulator has written to “a number” of major retailers after initial findings of Black Friday retailers showed some were still using a range of potentially misleading strategies such as fake countdown timers.
The homewares and fashion sectors are expected to dominate the Boxing Day with estimated sales of $476 million and $216 million respectively, while department stores are expected to see a boost with sales expected to be worth $123 million, up 5.1% from 2024.
Comparison site Finder was even more optimistic, predicting that one in three Australians will shop in the Boxing Day sales, spending a total of $3.1 billion, according to a survey of 1,005 people.
Chris Rodwell, ARA’s chief executive, attributed the forecast growth in sales to the “resilience” of the retail sector and “the enduring appeal of Norma Day as a leading discounting event”.
Although ARA expects strong post-Christmas sales, overall consumer confidence in Australia is not high and experts warn it could take a further hit if the Reserve Bank raises interest rates again.
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The ANZ-Roy Morgan consumer confidence rating fell two points to 81.5 in the week of December 9-15, down 2.4 points from the previous year and 2.8 points below the 2025 weekly average of 86.3.
The rating calculates the difference between the percentage of respondents who answered positively and those who answered negatively to five key questions about the economy and spending.
ANZ economist Sophia Angala said the rating finished 2025 six points lower than at the beginning of the year, with the decline potentially due to the risk of an increase in interest rates and weak labor market figures.
Prof Gary Mortimer, a retail expert from Queensland University of Technology, said the fact that interest rate cuts have been on hold for the last three months and the potential for an increase in the new year will continue to stifle confidence.
But he said there was “an element of tradition” about shopping in the Boxing Day sales, which meant it remained popular despite overall consumer sentiment falling.
KPMG chief economist Brendan Rynne said uncertainty about the economy meant people limited discretionary spending to periods of big sales.
“[It] “This doesn’t mean people aren’t spending money, they’re just being more cautious about how they spend money,” he said.
“It’s no surprise that ARA thinks it will be a healthy sales season, but this will come at the cost of more moderate growth and results later in the year.”
Although consumer confidence remains relatively low, household spending is up 1.3% from October and 5.6% from October 2024, according to the Australian Bureau of Statistics.
But Rynne said high employment and higher prices due to inflation meant there could be an increase in household spending despite weak consumer sentiment.
