With the Black Friday/Christmas sales season in full swing, new data suggests that small businesses could receive that much-needed end-of-year financial boost as a result of revenue generated during the period.
Business customer data from Commonwealth Bank highlighted that overall spend during this festive period is 11 per cent higher than the average monthly turnover. Historical data from 2023 noted that the following sectors saw the strongest performance in December that year, in comparison to the month prior:
- Motion pictures (+164 per cent)
- Book stores (+96 per cent)
- Hobby, toys and game shops (+53 per cent)
- Amusement parks, circuses, carnivals, and fortune tellers (+52 per cent)
- Home furnishing (+45 per cent)
- Gift, card, novelty, and souvenir stores (+41 per cent)
The Australian Retail Association also predicted a record spend of $6.7 billion for this coming Black Friday and Cyber Monday, an increase of 5.5 per cent year on year.
CommBank Executive General Manager Small Business Banking, Rebecca Warren, said the spend data provided valuable insights for small businesses seeking to take advantage of big upcoming shopping events in the festive season.
“Black Friday and Cyber Monday mark the start of a busy season for Australian small businesses as we head into the last month of the year. As consumer demand for a good deal reigns and more competition enters the market, it’s not too late for small businesses to take advantage of tentpole moments like these major shopping events.”
Warren added, “Our data shows the top five best performing industries by spend during the 2023 festive season were restaurants and bars, beauty and barbershops, clothing and department stores, homewares and travel. While these industries continue to perform well, the festive season generates gains for the broader small business community, driving revenue into supporting sectors like marketing and advertising, printing, courier and delivery services.”
CBA noted that regional small businesses can also expect to achieve strong sales this holiday season. While fast food, cafes and restaurants, and beauty and barber shops are consistently popular choices around the country, people tend to spend more money in regional areas on lodgings, hotels and resorts as well as drinking establishments than in the major cities where purchases at bakeries and jewellery stores are more common.
CBA also pointed out the importance of the holiday sales season for many Australian small businesses who, having faced a challenging year marked by rising operational costs and economic pressures, hope the revenues generated would provide them a boost for the year ahead.
