The first of two yearly Afterpay Day sales events runs from March 20-23.
The first of two yearly Afterpay Day sales events runs from March 20-23.
It’s marketed as a key retail event, with retailers big and small offering discounts of up to 70% and growing numbers of shoppers snapping them up. But financial experts warn such sales could impact the financial and mental wellbeing of shoppers. So, what exactly is Afterpay Day?
One of thenewest and fastest-growing retail sales kicks off today, with the anticipated four-day spending binge set to rival Black Friday as the biggest sale of the year.
Afterpay Day, a creation of the buy-now pay-later platform of the same name, is set to see cut-price deals of up to 70% off brands and retailers across the fashion, beauty, homewares, technology and travel industries over the coming four days, March 20-23.
Jeweller Michael Hill is among stores offering discounts, with 20% off “almost everything” and 1981 items discounted online.
At Hallensteins, shoppers can save 20% on full-price items and up to 50% off sale items and there’s 40% off storewide at Bendon Lingerie.
Home appliance manufacturer Dyson will offer discounts until March 31, with $550 off the recommended price of some vacuum models and $300 off a multi-styler and hairdryer.
Afterpay director of trade and partner marketing Kevin Azzopardi said with up to 70% marked off products in-store and online, the event was a win-win for customers and brands.
“Retailers see a huge uplift in sales, and shoppers get to take advantage of major savings in a way that works for them financially.”
Though the brand name of the lender is used prominently, discounts aren’t exclusive to Afterpay, who collate the offers on their website and app.
Savings are available in-store and on brand websites regardless of payment method.
Afterpay says shoppers can anticipate some retailers offering up to 70% off products in-store and online during the sale.
Internal Afterpay data says 1.2 million Aussies and Kiwis shopped during the last sale, but the platform says it’s not only large retailers who benefit.
Third-party metrics promoted by the lender say that in 2023 there was an average uplift in revenue of 41% for participating merchants.
In a January survey of 922 Australian Afterpay customers, 51% signalled an intention to shop with small to medium businesses this time around.
A third of Afterpay customers were more likely to shop Afterpay Day sales compared with December end-of-year sales, and the sale was gaining traction on Black Friday.
Just over two-thirds of surveyed Afterpay customers had shopped on Black Friday, 45% during Afterpay Day, 31% during December sales and 19% on Cyber Monday.
Wallet strain warning
The shopping event has come with a warning from financial experts, who say those who shop sales impulsively may feel a wallet strain long after the dopamine thrill of purchasing a perceived bargain wears off.
Financial Resilience Index research undertaken by the Financial Services Council last year showed that in 2024 more Kiwis carried personal debt than in 2023, with around 31% carrying buy-now pay-later debts. In 2023, they found that Gen Z and millennials were more likely to struggle with buy-now pay-later (40%) and personal loans (40%) than older generations. Afterpay Day shoppers generally skew younger (44% millennials and 24% Gen Z ) and female (67%).
Financial Services Council CEO Kirk Hope recommends people planning to participate in sales go in with a clear plan. Photo / Supplied
Financial Services Council chief executive Kirk Hope warns sales events in general were designed to encourage impulsive spending.
“Our research shows that while Gen Z and millennials place a high value on mental health, they are also more likely to have their mental wellbeing affected by financial stress than other generations.
The Financial Services Council recommends those planning to participate in sales, go in with a clear purchasing plan.
“Factor purchases into your budget, research alternative sources and reviews of the product, and aim to use debit cards instead of credit to avoid debts you may struggle to repay.”
