End of Financial Year sales remain one of Australia’s most significant retail events, but new research suggests households remain cautious despite widespread discounting, with EOFY spending forecast to grow by just 1.9 per cent this year – well below inflation.
Research from the Australian Retail Council (ARC) and Roy Morgan shows around 6.1 million Australians (26%) plan to shop during EOFY sales this year, with total spending expected to reach $10.7 billion.
The most popular categories this year are clothing, footwear and accessories (34%), household appliances and white goods (15%), and electronics and technology products (12%). Online spending is expected to account for 44 per cent of EOFY expenditure, unchanged from last year.
ARC Chief Industry Engagement Officer Fleur Brown said the findings highlight the growing pressure on households.
“EOFY provides Australians with an opportunity to secure discounts on a wide range of products and household purchases and retailers are working hard to offer compelling deals and significant discounts. Despite the obvious appeal of a bargain in a tough economy, consumers remain reserved.
“While spending is forecast to increase modestly over last year, the growth remains well below inflation and signals Australian consumers are carefully managing every dollar.”
The research also found Australians aged 35 to 49 are expected to spend significantly less than both younger and older consumers during this year’s sales period. Australians aged 35 to 49 are expected to spend an average of $1,464 during EOFY sales, compared with $1,946 for Australians aged under 35 and $1,993 for those aged 50 to 64.
Despite participation remaining steady, around three million Australians who spent during last year’s EOFY sales do not currently plan to participate this year.
“The research suggests Australians in their peak mortgage and family-raising years remain more restrained than other age groups when it comes to EOFY spending,” said Ms Brown.
“By contrast, older Australians are expected to spend more during EOFY sales. Many are more established financially, are more likely to own their home outright and are less exposed to the impact of higher interest rates.”
Among those planning to shop during EOFY sales, 37 per cent expect to spend more than last year, 36 per cent expect to spend about the same and 27 per cent plan to spend less. The proportion intending to spend less has increased six percentage points compared with last year.
“The reality is retailers are being squeezed from both sides. Customers are looking for lower prices and bigger discounts, while the cost of running a business continues to climb,” said Ms Brown.
“Retailers are working incredibly hard to deliver value, but continue to face rising costs across wages, leasing, transport, energy and supply chains.
“There is only so much businesses can absorb. The expectation that retailers can continue delivering bigger discounts while facing ever-increasing costs is becoming increasingly difficult to sustain. That’s why we’re calling for swift action by government to relieve pressure on business by reducing red-tape and unnecessary regulatory burdens.”
This ARC-Roy Morgan Snap SMS survey was conducted with an Australian-wide cross-section of 5,276 Australians aged 14+ on Thursday May 28 – Monday June 1, 2026.
About us: Australian Retail Council (ARC) represents a $444 billion sector that employs 1.4 million Australians across metropolitan, regional, and remote communities – making retail the largest private sector employer in the country and a significant contributor to the Australian economy. Our membership spans the full spectrum of Australian retail, from family-owned small and independent retailers that make up 95% of our membership, through to our largest national and international retailers that employ thousands of Australians and support both metropolitan and regional communities every day.
