Big spenders across Australia are hitting the Boxing Day sales in-store and online with a predicted $23.5 billion splurge.
Despite inflation and cost of living pressures squeezing household budgets, forecasts by the Australian Retailers Association (ARA) showed retail sales would remain strong.
The record-high predicted spend is set to be a 7.9 per cent increase on last year's post-Christmas shopping which takes in the period from December 26 to January 15.
Australians are also returning to in-store shopping after health restrictions in the past two years dampened consumer confidence.
But ARA chief Paul Zahra said the days of queuing outside stores long before they opened were long gone.
"In the past it was all about being first in-store, but with online shopping it's much easier to not miss out," he told AAP.
"There's more of an ease into Boxing Day sales ... it's a change in a good way as it's a much more relaxed and safer way to shop."
NSW shoppers are expected to spend the most, up an expected 9.5 per cent on 2021.
Mr Zahra said fashion retailers would be the most popular among this year's bargain hunters, with great clothing deals as stores look to clear inventories before winter.
After capital cities had unseasonably cold weather in the lead up to Christmas, Mr Zahra said retailers were keen to get their summer stock moving.
"It's great that the stars have aligned and summer has now arrived as shoppers look for bargains in store," he said.
Online shoppers are expected to mostly look for bargains on household goods.
Despite increasing interest rates and costs of living, record spending was still taking place.
Mr Zahra said people were happy to be out and about for the first time without restrictions in three years and it showed in their spending.
"Australians built significant savings through COVID and have a buffer because they couldn't spend as freely previously," he said.
He also said a large portion of homeowners were on fixed interest rates and hadn't yet felt the pressure from rate increases.
The Nation Retail Association predicted a $3 billion spend in Boxing Day sales alone across Australia.
Interim chief executive Lindsay Carroll said despite the growing popularity of Black Friday and Cyber Monday, Boxing Day still reigned supreme for Australian shoppers looking for a bargain.
Ms Carroll said while online shopping had grown in popularity, 50 per cent of shoppers still preferred to head to stores in person.
Aussie travellers looking for bargain airfares could also be in luck with budget airline Jetstar and it's parent Qantas promising sales on domestic and international fares in the next 48 hours.
