Klarna says Black Friday sales volume grew 298% on last year

Klarna says Black Friday sales volume grew 298% on last year
Hu Jingchen/Xinhua via Getty Images
  • Australian Black Friday sales volumes were 298% higher in 2021 than in 2020, according to Klarna.
  • The buy now, pay later platform has shared insights from the annual shopping extravaganza.
  • The full scale of the Black Friday sales is yet to be revealed, but retailers and banks estimated Australians would spend around $5.5 billion.
  • Visit Business Insider Australia’s homepage for more stories.

Buy now, pay later platform Klarna says its Australian users spent 298% more this Black Friday than on the same day in 2020, after a shopping bacchanal tipped to cost consumers some $5.5 billion.

In an early indicator of the nation’s evolving shopping habits, Klarna on Monday said sales volumes on Friday peaked 399% higher between midnight and 1am compared to an average day.

Volumes peaked between 3pm and 4pm AEDT, with the platform claiming sales were 878% higher than at the same time on any regular Friday.

Millennials aged between 25 and 40 were most likely to use the BNPL outfit for their shopping needs, making 54% of Black Friday purchases made through the platform.

The most common spending categories were clothing and shoes, jewellery and accessories, and leisure equipment, the Commonwealth Bank-backed Klarna says.

That focus on new threads matches the spending habits outlined in new figures from the Australian Bureau of Statistics.

Retail trade data, released Friday, showed expenditure on clothing, footwear, and accessories grew 27.7% in October, as shoppers rushed to newly-reopened stores in New South Wales and Victoria.

Industry players last week predicted Australian shoppers would spend big this Black Friday, an American shopping tradition which local businesses have increasingly adopted over the past decade.

On Friday, the Australian Retailers Association projected local buyers would spend some $5.4 billion over the Friday-Monday period, culminating with today’s Cyber Monday online sales.

NAB went even bigger, suggesting Australians would spend some $5.5 billion through the shopping period — peaking at one million dollars spent a minute.

“One in six of all November retail sales happened during this four-day period last year and we’re anticipating similar trends this year as the economic bounce back continues,” Rachel Slade, NAB group executive of personal banking, said Thursday.

Nearly 35% of Australians said they planned to shop on Black Friday and Cyber Monday, according to a Finder survey.

The full scope of Australia’s Black Friday expenditure is likely to emerge in the coming days, with Klarna competitors like Afterpay, and more traditional payment systems like PayPal and credit card providers yet to detail the nation’s shopping habits.

Last year, Afterpay declared it had processed some $900 million in Australian sales through the Black Friday period, with that figure expected to be even larger in 2021.