The latest ‘Inside Australian Online Shopping’ report has revealed significant year-over-year growth in the popularity of online shopping events. How did Click Frenzy, EOFYS and Cyber Monday perform?
New research by Australia Post has confirmed what the Australian retail sector has been talking about more and more over the last few months – online shopping events are on the rise!
According to the Inside Australian Online Shopping preview, two significant shopping events recorded growth of 28.7 percent when compared to 2017. Across all major shopping events in the country, Aus Post recorded an average growth of approximately 24 percent YOY.
The biggest shift in shopping behaviour came in the lead up to the all-important Christmas trade period, with Ben Franzi, the general manager of Parcel & Express Services at Australia Post saying the study’s results show consumers are now shopping for Christmas presents earlier than ever before.
“Traditionally, the first week of December was the peak for online sales. Now, it’s Black Friday and Cyber Monday – which strongly suggests that more Aussies are doing their Christmas shopping online and earlier than ever before,” he said in a statement.
Franzi believes this could be attributed to the fact 70 percent of Aussies claim they find online shopping earlier in the season less stressful than visiting bricks-and-mortar retailers during the Christmas rush.
“Australians are getting savvier with how they shop, and are starting to purchase seasonal items that they might usually buy in store. For example, in the second week of December we saw a marked increase in online purchasing of specialty food and liquor – resulting in a growth of 41 percent year-on-year,” Franzi said.
“Importantly, this signals to retailers they need to consider timing their sales earlier to grab a slice of the Black Friday and Cyber Monday pie.”
Looking at the specific data and parcel volumes over key Australian shopping periods, Australia Post says EOFYS sales increased by a whopping 30 percent, May Mayhem by 25.1 percent and Black Friday and Cyber Monday sales by 28.7 percent. Mainstays in the Australian retail calendar, such as Boxing Day, also saw a 24 percent jump in performance.
Meanwhile, homegrown online shopping event, Click Frenzy, reportedly rose by 13.5 percent in 2018 when compared to 2017. While Australia Post has recorded stronger growth for Black Friday over Click Frenzy, data from Hitwise Australia suggests that during Click Frenzy’s November sale event, retailers saw their site traffic jump by an average of 17 percent more than they did during Black Friday. To put this into perspective, during Click Frenzy the top 30 retailers participating in the event experienced an average traffic uplift of 70.27 percent, while the average uplift in traffic for Aussie retailers during Black Friday was only 53.07 percent. This difference in data has been attributed to the fact that smaller Australian brands are yet to see the same results during Black Friday as the bigger companies that have more funds to spend on marketing and a greater capacity to offer worthwhile discounts,
In fact, in the aftermath of Black Friday, retail management platform, Vend, reported that in-store spending dropped by 13 percent for small Aussie retailers during the Black Friday and Cyber Monday shopping weekend. The platform also recorded a 12 percent drop in the number of discounts offered by small retailers.
The 2018 Christmas shopping season undoubtedly saw a shift in the way consumers are shopping, with the November retail sales index from the Australian Bureau of Statistics coming in stronger than December, with the weeks leading up to December 25 lulling compared to the previous month.
Commenting on November’s sales performance in January this year, Lindsay Carroll, the deputy CEO of the National Retailers Association, like Franzi, said that online sales were responsible for the early boost in Christmas spending.
“Retail turnover from online sales continues to increase at a high rate and this can be attributed to the rise in popularity of events such as Click Frenzy and Cyber Monday, combined with the fact that buying online is a convenient option for many shoppers,” she said.
The next online sale event in the retail calendar is Click Frenzy Travel, which is due to start at 7 pm on Tuesday, February 26.
Disclosure: Click Frenzy Pty Ltd is owned by Global Marketplace, the parent company of Power Retail.
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