Ruslan Kogan expects sales to increase by 500 percent tomorrow.  That's why

Ruslan Kogan expects sales to increase by 500 percent tomorrow. That’s why

Australians spent $6 billion on Black Friday and Cyber ​​Monday sales last year and despite rising inflation, retailers are anticipating another busy trading period from Friday.

“Black Friday and Cyber ​​Monday have become very important to the retail industry,” Paul Zahra, chief executive officer of the Australian Retailers Association (ARA), told The Business.

“Actually around 25 percent of the turnover from all Christmas shopping [period] will be done in this one week.

“So it’s a big event that has US heritage, but it’s become a global phenomenon and it’s really appropriate for Australian consumers right now.”

Black Friday shopping events began as long weekend Thanksgiving sales in the US, and Cyber ​​Monday was later added as an online version.

Now they’ve joined forces for a four-day sale-athon, though many retailers start discounting up to a week before Black Friday.

ARA expects shoppers to spend about $200 million more than the same period last year, taking retail to $6.2 billion between Black Friday and Cyber ​​Monday.

Despite the increasing popularity of online shopping, the ARA expects more sales to be made in person.(ABC News: Dan Irvine)

Historically high inflation is not expected to impact sales

Although inflation is at its highest for more than 30 years, retail numbers show consumers are still shopping more.

The latest data from the Bureau of Statistics showed an increase in spending in September, partly due to higher prices.

A bar and line chart that gets taller, in shades of blue
Retail sales rose 0.6 percent in September. (Provided: ABS, Macrobond, ANZ Research)

But sales volumes were also 10 percent higher in the September quarter of 2022 than in the same period in 2021, when millions of homes in the southeastern states were under lockdown for months.

Data like this gives retailers like online womenswear store St Frock confidence that this super sale phase will be strong.

“Black Friday and Cyber ​​Monday is the most exciting time of year for St. Frock,” Founder and Chief Executive Officer Sandradee Makejev told The Business.

A lady with long blond hair and a dark blue dress points to a computer
Sandradee Makejev, founder and CEO of online fashion retailer St Frock, says staff will be working all weekend to get orders out.(ABC News: John Gunn)

“This is where we measure ourselves against our best numbers – it accounts for 7 percent of our annual sales.”

The company expects to sell 35,000 items and generate approximately $2 million in revenue.

Large trade figures are not only expected in fashion.

“Black Friday is huge, we would expect Black Friday to be over 500 percent up on our average days,” Ruslan Kogan, the founder and CEO of Kogan.com, told The Business.

A man with glasses, a receding hairline and a black hoodie stands in an office and smiles at the camera.
Ruslan Kogan founded Kogan.com in his parents’ garage in 2006 and the company today has a market capitalization of $360 million.(ABC News: Peter Durre)

He’s confident consumers will be shopping a lot now looking for a deal.

“We’re a values-based retailer, we’re all about efficiency and we’re trying to drive costs down for customers and they’re starting to appreciate that more and more in this current inflationary time where there’s a lot of cost of living pressures.”

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