Why you should hold out for end of financial year bargains

Loosen your wallets, grab your credit card, sharpen your elbows (and fingers) and get ready to spend.

Retail expert and QUT academic Gary Mortimer says that Wesfarmers, owner of retail giants Bunnings, Officeworks and Kmart, has told investors it didn’t make enough money this year after raking in the cash during the 2020 lockdowns.

So?

Discounts, sales, bargains, Christmas in June and July.

“Retailers will put tactics in place to try to lessen the impact,” Professor Mortimer told The New Daily.

“They’ll push strong with price-off promotions and end-of-year financial sales … they’ll invest effort to try to minimise that impact.”

He says our reduced spending has affected “almost every big retailer”.

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Online beast Amazon, which gorged on Australians in 2020, has a Prime Day sale on 21 June and its influence troubles established bricks and mortar capitalists.

In response, Kmart boss Ian Bailey told investors last week that Wesfarmers would try to “aggressively” increase its market share online, focusing on catch.com.au.

Online retail sales fell 3.2 per cent in April.

EY chief economist Jo Masters said there was a lot of spending on goods last year.

“(And) there’s only so many new PlayStations or new treadmills you can buy.”

Read more: How to save money at EOFY sales

Lifehacker says end of financial year (EOFY) sales offer savings in homewares, fashion, beauty, fitness and tech.

“It’s the perfect time of year to stock up on everything you need or that needs replacing.”

It has assembled a list of Australia’s best EOFY sales, featuring everything from rugs to books.

News.com is also keen to help you dip into your savings. Here’s its list of what you should splurge on.

The New Daily says thrifty shoppers know there are few things more satisfying than getting a great deal in EOFY sales.

“Conversely, finding out you’ve paid full price for something unnecessarily, or that your new purchase is a dud, can leave you frustrated and distressed.”

Never fear.

It reports that Finder is predicting a bumper bout of “retail therapy” this month.

A survey expects nearly nine million Australians (46 per cent of the population) to “dig deep and spend big”.

Australians are expected to spend $4.6 billion, compared with $2 billion last year when the nation was beset by pandemic lockdowns and only 27 per cent of Australians took part in the sales.

“This time last year, the pandemic was at its peak in Australia and most of us were reluctant to spend,” Taylor Blackburn, Finder’s personal finance specialist, told The New Daily

“But life has returned to a new kind of normal, the economy has bounced back and consumers seem ready to spend big.”

Only 33 per cent of Australians are expected to venture into stores.

Ben Johnston, from Willett Johnston Partners, sounded a warning: Don’t be fooled into thinking items bought at end of financial year sales can be claimed as a tax write-off.

“Tax deductions are a bit of a myth,” he told news.com.au.

“I actually really hate encouraging people to spend money to save tax because it’s costing you money.

“They get caught up rushing out before the end of financial year, spending money to recoup tax and it’s stupid.

“You should only ever spend money if you need to spend money to do your job. To fish out tax deductions should only be focused on what you were ordinarily going to be spending money on anyway.”

TND EOFY hints:

  • Shop online and compare retailers before making your purchase.
  • Double check the postage costs and refund policies.
  • Read online reviews from fellow consumers.
  • Check out whitegoods such as coffee makers, heaters and fridges.

Here’s where to spend your money to help Australia’s most disadvantaged people: Australian charity guide.

Read more: How to get discounts when you shop

Do you have any great suggestions for what to spend money on? Share your thoughts in the comments section below.

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Written by Will Brodie



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