The enthusiasm shown by Australian consumers towards Black Friday sales has waned amid cost-of-living pressures and the search for genuine savings. An RMIT expert explains how shifting consumer expectations are reshaping the retail landscape.
Professor Angel Zhong, School of Economics, Finance and Marketing
"Black Friday was once synonymous with extraordinary bargains, but today's consumers are far more discerning. They expect genuine value, and when discounts feel modest or misleading, they simply walk away.
"If shoppers perceive discounts as token gestures rather than meaningful savings, engagement drops sharply. This reflects a broader shift in consumer psychology, where trust and transparency matter more than hype.
"With cost-of-living pressures biting hard, shoppers scrutinise every purchase. A 20 per cent discount might have worked years ago, but today it feels inadequate when household budgets are under strain.
"Retailers then face a delicate balancing act, protecting profitability while meeting rising expectations. Blanket discounts no longer guarantee success, and businesses are rethinking their approach to avoid eroding brand value.
"The race to the bottom on pricing doesn't necessarily build long-term customer loyalty - it often just trains shoppers to only buy during sales periods.
"Many businesses are finding that the volume gains from Black Friday no longer offset the margin losses. This is particularly true when factoring in increased logistics costs and the resources required to support peak shopping periods.
"Businesses are pivoting toward loyalty programs and personalised offers because these strategies build trust and long-term relationships, rather than relying on one-off frenzies that no longer excite consumers."
Dr Angel Zhong is a Professor of Finance, specialising in global financial markets, behaviour and trends.
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