Baby Boomers have led the nation in online spending over the past year, with those most insulated from cost-of-living pressures splurging almost $1 billion more, new data reveals.

Figures published by Australia Post on Monday showed a fall in overall internet sales in 2023, with financial pressures on millions of families delivering a 1.2 per cent fall to $63.6 billion.

But those aged 58 and over (Baby Boomers) raised their spending online by a whopping seven per cent as increasing familiarity with technology combined with their relatively well-off financial situations.

It came as younger Australians in Generations X and Y (Millennials) saw their spending plunge by 11 and 2 per cent respectively; owing to steep inflation and soaring interest rates putting pressure on most household budgets.

Boomers, however, have escaped many of those pressures because they’re less likely to be paying down mortgages and aren’t usually raising children, reducing their essential spending.

That has opened the door for them to splurge savings built up over the Covid pandemic on everything from household equipment, garden tools and booze, according to the latest data, which matches up with previous research about generational financial pressures in 2023.

CommBank IQ figures released in November also showed Australians over 65 had increased their spending 6 per cent within 12 months, even as the rest of the nation pulls back on their purse strings to save money.

ABS figures show Baby Boomers are three times more likely to own their home outright than other Australians, meaning there’s no mortgage.

Source: Australia Post (click to enlarge).

Australia Post boss Paul Graham said that while overall spending slowed, it was clear that a growing number of households have become comfortable with the idea of shopping online.

“More Australian households are shopping online than ever before, with eight in 10 households making an online purchase in 2023,” he said.

“The increasing number of households shopping online confirms that behaviours established during the Covid-19 pandemic are here to stay.”

The most popular categories also appear to reflect generational habits, with categories frequented by Boomers, such as home and garden, proving more popular than fashion.

A total $16 billion was spent across the home and garden category, while $15.8 billion was spent across the broader category of “variety stores”.

Boomers are doing 14 per cent of their retail spending online, with 63 per cent of customers saying they find the ability to automatically track their parcels valuable for peace of mind.

Social researcher Claire Madden said older Australians have become more comfortable online.

“We’re seeing a growing confidence in older generations spending more than younger generations in each transaction,” Madden said.

Source: Australia Post (click to enlarge).

Spending holidays entrench

One interesting part of the 2023 data is the immense importance of shopping holidays, which have become fixtures on the retail calendar.

Since the pandemic, spending on Black Friday has skyrocketed 88 per cent, while end of financial year sales are up 75 per cent.

Gary Starr, general manager of e-commerce at the taxpayer-owned postie, said retailers were quick to capitalise on growing interest.

“The success of sales events like Black Friday and Cyber Monday ultimately contributed to Australia Post achieving its biggest eCommerce peak period ever, delivering nearly 100 million parcels in November and December,” he explained.

Western Australia leads the nation

Apart from the generational divide in spending in 2023, there was also a geographical split.

Western Australia, a state with a higher average income than eastern states, led the nation in online spending growth in 2023, up 5.1 per cent, while Northern Territory was a surprise second at 4.6 per cent.

Spending in Victoria and New South Wales, meanwhile, fell 1 per cent and 2.1 per cent respectively.