Business NSW’s December 2024 Christmas Retail Trade Preview highlighted an improvement in retail performance during the Black Friday period. Now, as we step into 2025, the insights from the report offer valuable lessons for small to medium-sized businesses planning for the year ahead.


Key Findings from the 2024 Retail Season

  • Black Friday Boost: Retail sales during the Black Friday period surged by 8.7% above average, nearly doubling 2023’s boost of 4.6%. This trend underscored the increasing importance of this shopping event for retailers.
  • Early Shopping Habits: Many consumers started their holiday shopping weeks earlier than in 2023, revealing a shift in Early Shopping Habits:purchasing patterns.
  • Online Growth: Online retail sales grew significantly, rising 9.3% above average, compared to a modest 1.3% increase in 2023. This contrasted with in-store sales, which maintained a steady performance at 6.2% above average.
  • Dominance of Major Platforms: Five key players (Amazon, eBay, Kogan, Shein and Temu) grew their market share collectively, highlighting the competitive e-commerce landscape.
  • Regional Insights: Regional areas that began experiencing increased retail activity earlier in the season saw stronger overall growth, reinforcing the value of early engagement.

 

Lessons for 2025 and Beyond

The insights from the 2024 season provide actionable strategies for businesses:

1. Plan Early: The shift to earlier shopping patterns suggests that promotions and campaigns should begin well ahead of traditional peak periods to capture customer attention.
2. Invest in Digital: With online sales outpacing in-store growth, businesses should focus on enhancing their e-commerce platforms and digital marketing efforts.
3. Understand Local Trends: Leveraging data on regional shopping behaviours can help tailor strategies to specific customer segments.
4. Compete with Giants: While major online retailers dominate, small businesses can carve out niches by emphasising unique offerings, customer service, and local connections.


Looking Ahead

Despite a solid Black Friday showing, many businesses noted weaker overall customer demand due to increased price sensitivity. As 2025 unfolds, adapting to consumer behaviours and market dynamics will be crucial for sustained growth.

Access the full Christmas Retail Trade Report for a detailed analysis and additional insights:
View Report