Discover your Gen Z playbook and reach more next-gen customers.
The end of the financial (EOFY) year is looming, and with it, your final opportunity to meet – or beat – your annual sales targets.
This June, millions of Australians will hit the shops to search for discounts and deals.
“As the cost of living crisis drags out, we continue to see a very budget-conscious consumer and we expect these sorts of sales events to continue to be very popular with Australians this year,” says Fleur Brown of the Australian Retailers’ Association
By 2030, Gen Z and Millennials will account for nearly half of all retail spending. And yet, studies show that many retailers aren’t ready to meet Gen Z’s needs and are struggling to provide the user experiences that digitally savvy Gen Zers demand.
If these retailers don’t adapt, they’re leaving money on the table, says Heawon Kim, Head of North America Mid-Market Sales at Afterpay.
The next generation of consumers learns about products via social media and engages with brand-specific apps and websites while shopping. Kim says that to connect with this demographic, which includes people ages 16 to 24, retailers should consider making a few simple changes, beginning with approachability.
“We know that Gen Z truly values accessibility at retailers,” says Kim. “They’ll continue to feel satisfied to engage with a business if it can service them with ease and convenience, whether that is making it easier on how they shop, how they pay or how they engage with a brand in general.”
"As the cost-of-living crisis drags out, we continue to see a very budget-conscious consumer."
Fleur Brown, Australian Retailers' Associat
"Gen Z will engage with a business if it can service them with ease and convenience."
Heawon Kim,
head of North America mid-market sales at Afterpay
In addition, Kim shared three high-performing solutions that retailers can take to acquire, engage and nurture Gen Z customers.
Why EOFY matters for retailers
For business owners, EOFY is not only an opportunity to drive revenue, reach new customers or re-engage lapsed shoppers, it’s also a chance to clear inventory to make space for new season collections – and reduce taxable assets before July 1.
And it’s a major retail moment. Last year, Australians spent $36.2 billion1 with retailers during EOFY sales, a 2.9 percent increase on the previous year.
Meanwhile, more than two million consumers shopped the sales using Afterpay, and of these nearly half (40.8%) spent with a small-to-medium-sized (SMB) business2 – making EOFY sales an important opportunity for both enterprise merchants and SMBs alike.
Set a clear objective
Online searches for EOFY deals start accelerating in late May3, which means that it’s already time to start setting your EOFY strategy.
Retail and e-commerce growth consultant Salena Knight recommends setting a clear campaign objective from the outset: “Is it revenue? Is it profit? Is it clearing stock or customer acquisition? Because you can use EOFY sales for all those things, but they all have different strategies.”
For example, while a merchant who wants to drive customer acquisition might launch a storewide discount amplified by a paid social media campaign, businesses that are aiming to hit sales targets might focus on tactics to boost basket size.
1 Leverage social commerce
Social commerce — which refers to shopping experiences via social apps — is imperative for next-gen consumers, whose banking and financial apps have always been just a click away from their social apps.
A survey by the International Council of Shopping Centers found that 45% of Gen Z respondents named TikTok and Instagram as the top platforms influencing their purchasing decisions, followed by YouTube (38%), Facebook (24%), Snapchat (17%), Twitter (14%) and Reddit (7%).
To acquire new customers, Kim says it’s important for retailers to connect with consumers via social shopping experiences.
“If you look at some of the most successful retailers, a common denominator that all of them have is a solid understanding of how to leverage their social channels in a meaningful way to create as many touch points as possible for their Gen Z audience,” says Kim.
2 Offer flexibility
Younger shoppers are embracing flexible payment methods, such as buy now, pay later (BNPL).
That’s because next-gen shoppers are increasingly credit averse, says Kim. A study by Afterpay and Oxford Economics found that roughly three-quarters of Gen Zers and Millennials use BNPL services at least once a month, compared with only 52% of Gen X customers.
“Convenience is paramount for the next-gen consumers,” Kim says. “Gen Z is looking for more flexibility and to gain better access when it comes to their omnichannel experience.”
One retailer that has had success by offering flexibility is HBX, a global e-commerce platform and retail destination of Hypebeast, which started offering Afterpay in 2022 to make products more accessible to its shoppers, who are primarily Gen Z and Millennials.
“We generated a noticeable sales result which really exceeded our expectations,” said Chief Revenue Officer Huan Nguyen.
3 Extend offers and promotions to unlock loyalty.
The No. 1 reason Gen Z will purchase from a brand again is if it offers good discounts and sales, according to Afterpay research. And yet, only 36% of Gen Z survey respondents said they feel loyalty to a brand, says the National Retail Federation (NRF). That, says Kim, means retailers could benefit by offering comprehensive loyalty programs to extend promotions to shoppers. These kinds of programs, she adds, don’t require a big financial and time investment.
Next-gen consumers are engaging with retail technology differently than the generations before them. By understanding their shopping behaviors and purchasing decisions, brands can put that information to use and drive measurable impact and incrementality.
To learn more about these strategies, and to read examples of retailers who have put these plans into action, download the latest Afterpay Playbook, From Trend to Recommend: The Retail Recalibrations that Will Attract Next-Gen Shoppers.
All references to any registered trademarks are the property of their respective owners. Afterpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.
Match your goals to your game plan
To drive customer acquisition consider strong, persuasive discounts, including on hero products, and amplify your campaign via paid advertising.
To clear inventory offer attractive discounts, especially for slow-moving or seasonal stock, and use language that emphasises urgency and scarcity (such as “final clearance” and “last chance”).
To increase profit focus on boosting basket size by upselling, cross-selling, bundling and tiered discounts, where customers receive bigger discounts for spending more.
Craft offers that benefit both the customer – and you
Don’t just slash prices. Take the time to consider your profit margins and goals and set a EOFY sale strategy that increases revenue while still retaining profit.
Consider bundles, gift with purchase offers or tiered “buy-more, save-more” offers to increase average order value.
Knight also recommends considering offering exclusive content in place of a discount. For example, a clothing company might offer styling videos or personalised products, while a fabric store might offer sewing tutorials. Knight says, “It’s about giving your customers something exclusive, which differentiates you from the bigger department stores and brands.”
Understand your customer
EOFY sales differ from other retail periods. Unlike the festive season, when gift-buying drives many purchases, EOFY shoppers are primarily seeking great deals. "During EOFY, customers are often purchasing larger items they've wanted for some time, or essentials they 'need' rather than 'want,'" says Knight, noting that many have researched their purchases weeks or even months in advance.
When planning your marketing and sales strategy, it's important to view the experience through your customers' eyes. Are they searching for work-related items to claim on their tax returns? Trying to maximise health insurance benefits before they reset? Updating their winter wardrobe? Understanding these motivations should shape the way you communicate and position your offers.
To understand more about the Afterpay EOFY shopper and what they purchase during sale time, take a look at our infographic [How to have your strangers EOFY sale yet] which features exclusive insights and tips. LINK
Leverage last year’s data
Last year’s data is a great place to start for this year’s EOFY strategy. Look back on previous EOFY emails and social media posts to identify which ones performed the best and worst, and analyse why. Similarly, check which search terms led customers to your website and consider ways to optimise for these terms.
Consider leveraging data to segment your audience into lapsed versus loyal and high-spending versus bargain-hunters, and tailor your message to each audience.
Spread the word
EOFY shoppers can’t spend with you if they don’t know about your promotion. Amplify your sale by promoting it across all your platforms, including social media, and email – and consider piggybacking off fast-growing social media trends, whether that’s a popular dance on TikTok, a new trending sound or hashtag.
And don’t forget to submit the details of your EOFY offer here so we can feature it on Afterpay’s Shop Directory.
The EOFY season can be a crowded, noisy space, and paid amplification is one way to help you stand out. Consider hiring influencers, paid search or social media advertising to get your offer in front of more customers. SMS marketing is another way to emphasise urgency.
Be consistent
EOFY shoppers tend to be omnichannel shoppers; many customers research online before heading in-store to purchase and vice versa, so it’s important to ensure that your messaging is consistent across every channel. Consider investing in EOFY-specific landing pages or home-page banners so shoppers can easily find your promotion.
Tip: Did you know that you can create a range of social media posts, emails and website banners quickly and easily using our free templates? Download the templates here, and make amplifying your offer easier than ever.
Don’t forget to include Afterpay in your social media posts, so customers know they take advantage of your EOFY offer and pay in instalments. It could be enough to close the deal.
Talk to your suppliers
You’re not the only one trying to hit targets and move inventory before July 1; your suppliers also have sales goals to meet. “Why not talk to your suppliers to see if there is a promotion that could be a win-win? Ask them if they have any stock they want to move,” says Knight. “You may be able to do a deal where they ship it directly or you only have to pay for what you sell.”
Don’t forget to debrief
It’s important to think beyond July 1, and ensure that you’re collecting contact details and data on any new customers so you can retarget them later in the year.
It’s equally important to take time after the EOFY sale to reflect on what worked and didn’t work this year. “Few promotions ever the way that you expect them to. Sometimes they work better than you thought. Sometimes they don’t,” says Knight. “So, spend some time reviewing what worked, what didn't and what you could change in the future. Anything that you get data from will help you to improve campaigns moving forward.”
Want to know more about the EOFY Afterpay shopper? Discover exclusive insights into how Afterpay customers spent last year, as well as more practical tips and tactics.
All references to any registered trademarks are the property of their respective owners. Afterpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.
1 ABS data 2024 2 Afterpay internal data, June 2024 3 Google Trends data, accessed April 2025
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