Aussies feeling the pinch amid a rise in living costs and RBA interest rate hikes in three consecutive months are expected to splurge big on everyday household items during a mammoth 65-hour shopping event.
While the sale is annual, this year it will be bigger and longer than before, with more than 100,000 products available on sale from big name items to locally produced goods.
The event kicks off at midnight, Tuesday July 12, giving Aussie shoppers who are Amazon Prime members discounts on big ticket items and everyday household goods.
There will be deals across categories including electronics, homewares, video games, Amazon devices, pantry food and drink, toys, sports equipment, fashion, beauty and more.
Big brands offering discounts include Apple, Barbie, Bosch, Bose, Garmin, GHD, Instant Pot, Lego, Lenovo, North Face, Nintendo, Oculus and Samsung.
Savings will also be offered on goods from small local businesses, including Brisbane-based Nakie and Victoria’s Orbitkey, and Doggie Balm Co.
Some deals will be live in the week leading up to Prime Day, so members can start shopping early.
Shoppers are expected to embrace the sales amid an upbeat outlook for retail sales, despite challenges facing the Australian economy for the rest of the year.
Roy Morgan’s forecast on Australian Bureau of Statistics retail sales data over the next few months is for annual growth of 9.9 per cent in July, up to almost 13 per cent in August and up to 10.6 per cent in September.
Roy Morgan industry communications director Julian McCrann on Monday described the annual growth figures as “very strong”.
“These projections suggest ABS retail sales in these months will average around $33bn – similar to the level of retail sales seen so far this year,” Mr McCrann wrote in an opinion piece for the Australian Retailers Association.
“This suggests that while growth will moderate over the next few months, the overall sales results are likely to hold up relatively well, despite the high inflation and the expected increases to interest rates.”
Mr McCrann said this was down to the “large buffer of savings” Aussies built up during the pandemic which the Reserve Bank now relies on to support the economy over the next six to 12 months, despite rising interest rates.
“So far this assumption has proven correct, with ABS retail sales data remaining strong in the first month after the RBA started increasing interest rates,” he said.
The RBA raised the cash rate by 0.5 percentage points this month, taking it to 1.35 per cent, the highest level since May 2019.
It was the third rate hike in as many months, and the Reserve Bank has warned more rate rises are likely in coming months.
Bank of Queensland chief economist Peter Munckton said despite the mountain of savings households socked away over Covid, Aussies were now being hit with a significant inflation tax.
Surveys were showing consumer sentiment was negative and while higher interest rates had played a role, higher inflation was the biggest issue, he said.
As a result, Mr Munckton said there was a risk consumer spending could slow down sooner than thought.
“The May retail sales data highlights that consumer spending so far has remained strong,” he said.
“But declining house prices, rising interest rates and negative real wages growth means the risks are that consumer spending may be slower than anticipated sooner and is the reason why the RBA is keeping a careful eye on developments on what households are doing with their money.”