I’ve had a couple of fairly big-ticket items on my shopping wishlist for a while now: a pair of pricey noise-cancelling headphones, and a new high-quality hairdryer.
But like many people, I’ve put off making these purchases for some time because I have been waiting for the big Black Friday sales to kick off. Why pay full price when I know a bargain is potentially out there for the taking?
Black Friday sales are bigger than ever - but does that mean shoppers will spend more?Credit: Simon Schluter
We’re collectively expected to spend billions of dollars over the coming week or so. The Black Friday sales - a phenomenon imported from the US not that long ago - have become a bigger event every year.
And this year, with most Australians more budget-conscious than ever, many retailers are pulling those sales forward. I’ve already been bombarded with social media ads and emails about sales for everything from jewellery to clothing and homewares. Even supermarkets are getting in on the act.
But what will this potential shopping frenzy mean for the economy? Well, there may be no frenzy, for starters, because there are plenty of signs pointing to a subdued shopping season.
The Reserve Bank has been trying since May last year to get inflation down through raising interest rates. Higher rates mean larger monthly mortgage repayments for homebuyers, reducing the amount of money left over for spending on anything else.
High inflation has also meant a greater proportion of that cash is needed to pay for essentials, from fuel to groceries and energy bills.
For many households, that means there has been little left in the pot for anything else. That’s probably helping to drive consumer sentiment further down into deeply pessimistic territory, as Westpac’s latest survey shows.
Could Black Friday bargain hunting raise risk of another rate rise?
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20.11.2023
I’ve had a couple of fairly big-ticket items on my shopping wishlist for a while now: a pair of pricey noise-cancelling headphones, and a new high-quality hairdryer.
But like many people, I’ve put off making these purchases for some time because I have been waiting for the big Black Friday sales to kick off. Why pay full price when I know a bargain is potentially out there for the taking?
Black Friday sales are bigger than ever - but does........
© The Sydney Morning Herald
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