New spending data has revealed a significant slowdown in West Australian consumer activity during the recent Black Friday sales, as households across the state grapple with persistent cost-of-living pressures.
Bankwest Data Points to a Spending Slowdown
According to transaction figures released by Bankwest, the number of shoppers actively participating in the Black Friday sales period in late November fell by 5 per cent compared to the same event in 2022. The analysis, which examined hundreds of thousands of card transactions, indicates a clear pullback in discretionary spending among West Australians.
The data shows that not only were fewer people shopping, but those who did open their wallets were more cautious. The total value of transactions processed by Bankwest over the Black Friday weekend also saw a decline. This dual trend of reduced participant numbers and lower overall spend highlights the financial strain being felt in many households.
Consumer Sentiment Reflects Broader Economic Squeeze
Economists point to a combination of factors behind the subdued sales figures. High interest rates, elevated inflation, and increased mortgage and rental costs are leaving West Australian consumers with less disposable income for non-essential purchases. The much-anticipated sales events, once a trigger for major splurges, are now being approached with greater hesitation and selectivity.
This behavioural shift is consistent with national trends showing weakened consumer confidence. While Black Friday and Cyber Monday promotions remain prominent on the retail calendar, their power to drive unchecked spending appears to be diminishing in the current economic climate. Shoppers are increasingly prioritising essentials and seeking out only the most crucial deals.
Implications for WA's Retail Sector and Economic Outlook
The downturn in Black Friday activity serves as a key indicator for the health of the state's retail sector heading into the crucial Christmas trading period. A soft sales result for what is typically one of the year's biggest shopping events suggests retailers may face continued challenges in stimulating consumer demand.
The Bankwest data provides a real-time snapshot of household financial stress. When faced with sustained pressure on their budgets, West Australians are demonstrably cutting back. This consumer caution has direct consequences for local businesses, from major chains to smaller independent operators, who rely on seasonal spikes in revenue.
Looking ahead, the focus will be on whether this restrained spending pattern continues through December. The performance of the retail sector is a vital component of the broader state economy, and a prolonged pullback could signal slower economic growth. For now, the message from the Black Friday data is clear: the cost-of-living squeeze is firmly altering consumer behaviour in Western Australia.
