Black Friday, an early Christmas present for Aussie SMBs

With Black Friday kicking off tomorrow (29 November), businesses across Australia are ramping up for one of their biggest days of the year.

Originally referred to as a tradition after Thanksgiving in the United States, Black Friday marks the beginning of the Christmas shopping season, often sending consumers into a frenzy as businesses offer highly advertised discounts, deals, and specials.

Over the years, the Black Friday phenomenon has outgrown the seven days before Christmas, which was previously the best sales period for small and medium businesses.

Business NSW chief executive Daniel Hunter said: “The week leading up to Black Friday last year saw transactions soar 49 per cent above average – making it the busiest shopping period of the year, surpassing even pre-Christmas trade.”

From this, Business NSW has called on consumers to support local retailers both in-store and online, emphasising the critical role these enterprises play in the state’s economy.

“This year presents a crucial opportunity for local retailers – especially in NSW’s regions – to thrive, if shoppers choose to buy local,” said Hunter.

Business NSW and DataCo Labs analysed the trends of retail trade, finding that:

• Retail trade during the week before Black Friday has also surpassed the individual performance of the final two weeks of the year, as transactions in the week leading up to Christmas were 34 per cent above average, while the week post-Christmas had transactions 25 per cent above average.

• The pattern of online retail trade shows that the peak period of the year was the week leading up to Black Friday, with transactions 37 per cent above average.

• In-store transactions also recorded a similar boost of 37 per cent during that period. The busiest week for in-store activity was the week prior to Christmas, with transactions 54 per cent above average.

“Supporting small businesses benefits communities across NSW. Money spent locally stays in the region, funding local jobs, infrastructure, and community programs. Local businesses support local soccer teams, volunteer at schools, and keep main streets vibrant. Every dollar spent locally creates a ripple effect that benefits the entire community,” said Hunter.

As the online space has developed over the years, it’s become a crucial mainstay for retail success.

“While Black Friday offers immense opportunities, the shift to digital platforms has transformed the retail landscape. Business NSW encourages small and medium businesses to invest in their digital capabilities to capitalise on the growing trend of online shopping,” said Hunter.

“Consumers are spending now, with a focus on online deals during Black Friday. We need our local businesses to meet them where they are – online and in-store. Businesses investing in digital platforms not only stay competitive but also expand their reach beyond NSW.”

Hunter warned against international online retailers like Amazon, eBay, Kogan, Shein, and Temu, which made up 4.1 per cent of retail trade in NSW during Black Friday week last year. Although these sites are reliable online during peak season, they face post-Christmas slowdowns, unlike local retailers who continue to thrive in-store.

“This highlights the importance of supporting local businesses that maintain steady contributions to the community year-round,” said Hunter.

“Small businesses are innovation hubs. They need our support to flourish. This Black Friday, let’s prioritise local retailers.

“Whether you’re buying gifts or everyday essentials, shopping locally ensures NSW’s communities continue to grow and prosper.”

Kace O'Neill

Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.