Boxing Day sales draw in consumers but experts warn to shop smarter to bag a bargain. Photo / Andrew Warner
Boxing Day sales draw in consumers but experts warn to shop smarter to bag a bargain. Photo / Andrew Warner
If you thought Black Friday was hectic, be prepared for the shopping madness of Boxing Day.
New data from retail comparison site PriceSpy has revealed the day after Christmas as the biggest shopping day of the year, with Kiwis favouring Boxing Day over any other big promo day.
More thanhalf the respondents in a recent Pricespy survey said they planned to brave the crowds, queues and parking chaos of Boxing Day to take advantage of expected sales.
Liisa Matinvesi-Bassett, New Zealand country manager for PriceSpy, said Boxing Day stood out as the number one shopping event for New Zealanders. In the US, it’s Black Friday - the day after American Thanksgiving, that dominates as the year’s most significant shopping event.
“The fact that over half of the respondents in our consumer omnibus survey are planning to shop on Boxing Day is significant, particularly in light of the ongoing cost-of-living crisis and inflation affecting consumers at this present time,” Matinvesi-Bassett said.
The cost of living had hit New Zealanders hard, with higher interest rates and essentials such as groceries, petrol and utilities all going up in price.
Boxing Day is notorious for big queues and carpark chaos. Photo / Jason Oxenham
Gift vouchers and cash received as gifts on Christmas Day allowed even the most cash-strapped Kiwis a little spending money on Boxing Day.
Retailers were also hit hard by the cost of living crisis and many had started sales early to attract customers.
Retail NZ chief executive Carolyn Young said in the past there was a build-up toward Christmas but this year had seen unusually quieter days.
She said there were already stores with big signs advertising 40 and 50 per cent off.
Some of the sales were genuine, Matinvesi-Bassett said, but she urged consumers to do some research before they handed over cash, card, or gift voucher.
The Pricespy research reveals Boxing Day offers some great bargain opportunities - but only some things are cheaper.
The same sneaky sales tactics used on Black Friday and Cyber Monday are used to lure consumers on Boxing Day, Matinvesi-Bassett said.
PriceSpy - which is an independent and impartial price comparison site - found that 17 per cent of the products listed on the site saw a price increase on Boxing Day last year. And 10 per cent were subjected to being a fake sale.
Fake sales are when the price is bumped up in the weeks leading up to the big day and then discounted.
This year, some consumers have opted out of big sales days because of the current cost of living crisis.
Big signs and big discounts lure consumers with many buying big ticket items such as televisions and tech equipment on Boxing Day. Photo / Brett Phibbs
The survey also asked consumers if they were affected by the cost of living crisis and how it changed how they shopped.
* 94 per cent of the survey respondents say they have been impacted by the cost of living crisis this year.
* 93 per cent of the survey respondents say they have noticed price increases across everyday items, like fuel and groceries this year.
Despite this 58 per cent of those surveyed said they saw Boxing Day as a way to save money.
“Some are option out but others see it as a chance to save money. 58 per cent of survey respondents say they have delayed their Christmas shopping for the lower prices on Boxing Day,” Matinvesi-Bassett said.
PriceSpy’s survey results revealed that the average amount New Zealanders plan to spend on Boxing Day this year is $840.40, marking a substantial decrease from the 2022 average of $1203.30 and the 2021 figure of $954.80.
Consumer NZ shared its 5 tips to help New Zealanders spend smarter this Boxing Day.
The Consumer Guarantees Act (CGA) provides great consumer protection, but doesn’t require retailers to provide a refund if you buy something and change your mind about it.
“It’s easy to get swept up in a buying frenzy when something on special catches your eye,” said Jessica Walker, Consumer communications and campaigns manager.
“Once you’ve bought it, the retailer is not obliged to provide you with a refund just because you change your mind or your circumstances change. But check with the store, as some have generous returns policies.”
Don’t fall for the hype
Walker wants to warn shoppers that promotions are often not what they seem.
“Check out PriceSpy and PriceMe to gauge the real value of any items that catch your eye.”
Limitations or blanket disclaimers on sale items like “no refunds” or “no exchanges” are misleading.
“Whether you purchase an item on sale or not, you have rights under both the Consumer Guarantees Act (CGA) and the Fair Trading Act (FTA). We think a store that displays a ‘no refunds’ sign is breaching the FTA.”
Don’t waste your money on warranties
Under the CGA, manufacturers and retailers must guarantee the products they sell. This includes guaranteeing that goods are of acceptable quality and fit for their purpose.
“If your product develops a fault when it’s still reasonably new, the retailer is required to sort the problem – even if the manufacturer’s warranty has expired,” says Walker.
“You’re already covered. Say no to extended warranties, and don’t be fobbed off by a store trying to tell you a product is out of warranty.”
Know your consumer rights
Research from the Ministry of Business, Innovation and Employment found that almost 50% of 18-26-year-olds are likely to leave a complaint unresolved due to gaps in consumer knowledge.
“The CGA gives people powerful rights, but we can’t exercise them if we don’t know about them.”
