Survey: consumers to save not spend

8 September 2010

New research released by peak industry body the Australian Retailers Association (ARA) indicates a lacklustre outlook for retailers as consumers tighten up on spending.

The ARA Consumer Spending Confidence Survey, prepared by market researcher Interconsult and released last week, reveals three quarters of consumers planned to spend less over the next 12 months. Meanwhile 61 per cent of consumers were uncertain about Australia's financial future, 65 per cent believed in saving not spending, 55 per cent were shopping at different stores to target price over convenience, almost 50 per cent would forgo best brand for best price and 52 per cent spent time researching price online before buying.

ARA Executive Director Russell Zimmerman said the results were bad news for retailers who had been hoping spring sales would boost trade.

"Around about half of consumer respondents said they were choosing stores based on price not convenience (55 per cent), they were doing without better quality brands to save money (almost 50 per cent) and they were spending time researching prices online to find the best deals before buying (52 per cent)."

"It seems consumers' penchant for spending less and saving more has more to do with the nation's economic conditions than individual incomes, with 45 per cent expecting no change in their current financial situation but over 60 per cent uncertain about financial times ahead for Australia.

"This level of uncertainty would only be exacerbated by the current hung parliament and political climate."

"However, the level of disposable household income did impact spending plans for the next 12 months, with the 25 percent of respondents who reported they wouldn't change their current spending habits, tending to be older couples with no children at home and those with incomes over $100,000," Zimmerman said.

The ARA Consumer Spending Confidence Survey was prepared by Interconsult for the Australian Retailers Association. A total of 1006 participants from an online panel were surveyed across Australia from 5 to 10 August. Quotas were placed on gender, age and location to ensure representation of the population.

For a full free copy of the survey, visit the ARA research pages at www.retail.org.au or call 1300 368 041.

 

 

Comments

Jan Johnson PELIGUCCI Brunswick Heads

It seems 2nd hand is cool, and people are not prepared to pay for Aussie brands. add to that, greedy landlords ,not forgetting E bay this has been my worst start to spring in 18 years of trading

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