Australian retailers are gearing up for a record-breaking Black Friday sales period, with projections indicating consumers will spend $6.8 billion over the long weekend. This figure represents a 4 per cent increase compared to the previous year, according to the Australian Retailers Association. VanEck senior portfolio manager Cameron McCormack noted the strong forecast suggests consumer appetite remains resilient despite rising prices.
McCormack stated that the anticipated increase in foot traffic in shopping centres would provide a boost for retailers, especially those in the electronics/appliances, department store, and lifestyle sectors, which have historically performed well during Black Friday sales. He added that retailers who have reported recent profit growth could see further momentum from the sales event.
Specifically, McCormack pointed out that JB Hi-Fi and Harvey Norman, which both reported profit growth in their full-year financial results, could see their rallies extended into FY26 with a significant spike in sales. JB Hi-Fi is a major retailer of consumer electronics and home appliances. Harvey Norman is a large retailer that sells furniture, bedding, computers, communications, and consumer electrical products. However, McCormack also noted that retailers such as Myer, which reported a 30 per cent drop in net profit for FY25, have more riding on converting window shoppers to paying customers during the sales event.
Furthermore, retail property owners, including Scentre and Vicinity, could also benefit from the increased activity. Resilient consumer spending is expected to boost operating incomes for real estate investment trusts (REITs) that own and manage shopping centres.
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