A notable rise in the use of gift cards and vouchers is significantly enhancing Boxing Day sales, which are now competing with the growing popularity of promotional events like Black Friday. According to Gerry Harvey, executive chairman of electronics and whitegoods retailer Harvey Norman, gift cards now represent approximately one-fifth of all transactions during this period, particularly in the days following Christmas. Harvey remarked, “People see gift cards as free money and if it is wrapped up nicely, it’s a winner.” Although specific sales figures for Boxing Day were not disclosed, he estimated an improvement of between 2 and 3 percent compared to the previous year.
Sales figures from the Australian Retailers Association indicate that Boxing Day sales reached $1.6 billion, reflecting a 4 percent increase from the prior year. Moreover, projections for the week following Christmas suggest a further estimated rise of 4.4 percent, with anticipated sales nearing $3.8 billion.
Shifting Retail Landscape
The significance of Boxing Day sales has diminished in the face of the November sales events, which now generate nearly double the revenue. Australians reportedly spent around $6.8 billion across the four-day Black Friday event. Fleur Brown, the chief industry affairs officer for the Australian Retailers Association, explained that Boxing Day is primarily about clearance, focusing on discounting slower-selling items to make room for new stock. She noted, “The quest for value has been at an all-time high this year, with households remaining under financial pressure.”
The increasing popularity of gift cards is also attributed to a growing trend in online shopping, which has shifted customer preferences towards vouchers as Christmas gifts. According to Blackhawk Network, a global distributor of gift cards, the Australian gift card industry is projected to reach US$10.1 billion (approximately $15.1 billion) by 2028, up from US$4.8 billion in 2020.
Emerging Trends in Consumer Purchases
Data from Shopify, an e-commerce technology platform utilized by numerous retailers, revealed that post-Christmas sales saw pet beds emerging as the top trending item, showing an increase of 126 percent compared to the days leading up to Christmas. Additionally, portable gazebos and canopies for sun protection at the beach experienced a growth of 105 percent, while baby and toddler car seats and prams rose between 60 percent and 80 percent during the same timeframe.
Shaun Broughton, managing director for Australasia, the Pacific, and Japan at Shopify, indicated that retailers are adapting by launching promotions earlier and sustaining them for longer periods. This strategy reflects a broader trend in the retail sector as businesses seek to navigate the evolving landscape of consumer behavior and preferences.
As the retail environment shifts, Boxing Day continues to adapt, leveraging innovative strategies like gift card promotions to maintain its relevance in the face of changing consumer habits and competition from other sales events.
