Australians set to spend AUD $10.5 billion in EOFY sales

New data from PayPal indicates that a significant proportion of Australians plan to participate in this year's End of Financial Year sales, driven by a strategic approach to managing household budgets amidst ongoing cost-of-living pressures.

According to the research, 71% of Australians intend to shop during the EOFY sales, a notable increase from last year's 38%. This trend is echoed by the Australian Retailers Association's forecast that shoppers will spend an estimated AUD $10.5 billion during the seasonal sales event.

Rising living expenses are a key influence, with 76% of respondents stating that cost-of-living pressures have made them more likely to shop during sales events. In addition, 85% report being more price-conscious now than they were five years ago, reflecting a broader shift in consumer sentiment across the country.

The survey results also suggest that the timing of purchases has become increasingly important for shoppers seeking to maximise value. Among those surveyed, 69% said they actively plan their purchases around sales periods.

"This EOFY, Australians are proving that bargain-hunting is more than just a habit – it's a strategy for navigating economic tensions, with three-quarters of Australians saying that online sales events can help them manage cost of living pressures. While sales can be a great way to save money on things you need or already intend to buy, it's important to plan purchases and set budgets to avoid impulse buys and overspending," Cathy Jamieson, Head of Consumer Research at PayPal Australia, said.

The inclination toward seeking discounts appears widespread, with 71% of Australians admitting they "hate" paying full price for products or services. Over half of respondents (51%) said that missing an opportunity to buy a wanted item on sale feels like "losing money".

Differences in shopping intent are apparent across generations. The so-called "Sandwich Generation"—adults simultaneously supporting both children and elderly parents—were the most likely to shop during EOFY, with 86% indicating they would participate. Younger consumers also showed high levels of engagement, with 81% of Generation Z and 82% of Millennials planning to shop the sales, compared with 67% of Generation X and 50% of Baby Boomers.

The research highlights a preference among Australians for online shopping during sales periods. 71% of respondents believe the best deals are available online, and 69% reported using their phones to check prices while shopping in-store to ensure they are getting the best value.

In terms of what Australians are likely to purchase during the EOFY period, fashion and clothing lead at 42%, followed by electronics at 33%, health and beauty products at 30%, and books, games, or hobbies at 25%. Homewares and garden items were cited by 24% of respondents, while sporting or outdoor gear, tax-deductible expenses, and online courses or educational materials were less commonly prioritised.

PayPal has provided several recommendations for consumers aiming to shop safely and wisely online during the sales. These include planning purchases and setting budgets in advance, scrutinising online retailers for signs of suspicious activity, reading reviews to avoid fraudulent sellers, understanding returns policies, comparing prices in real time, and using secure payment methods to protect financial data.

The research underpinning these findings was conducted by YouGov on behalf of PayPal Australia, with a nationally representative sample of 1,044 adults aged 18 to 75. The survey methodology included weighting for age, gender, and location to reflect the demographic distribution of the wider population.