More than half of Australian shoppers will spend more in the second half of 2015 than the first, according to a survey of an independent panel of 1000 Australians commissioned by Cashrewards. Moreover, 58% will spend more in 2015 compared with 2014, including both online and in-store shopping.
According Cashrewards founder Andrew Clarke, “The outlook for retailers through to the end of 2015 is looking positive. Spending has always been a barometer of consumer confidence in the economy, and low interest rates may be a contributing factor towards the positive sentiment about spending.”
NSW confident
NSW residents are slightly more confident about the economy than those in other states, with 61% saying they will spend more this year, followed by 58% of Victorians, 58% of Queenslanders, 56% of West Australians and 56% of South Australians.
The 2015 spend trend is dominated by the 18-24 age bracket, with 64% saying they will spend more this year than last. Not surprisingly, they are also the age bracket that plan to increase their online spending the most by the end of 2015 (38% of respondents), in contrast to the over-55s, 37% of which will spend more in-store.
Millenials motivated by cashback
In line with the increased online spending by younger demographics, the survey revealed that the 18-25s age bracket is the one most motivated by online cashback incentives (59%), followed by 25-44s (55%), then 45-54s (49%), and over 55s (38%).
“The fluctuating employment rate and Australian dollar certainly don’t seem to have deterred spending by the 18-25s, which may indicate that this age bracket isn’t as affected – or just that they don’t allow it to affect their planned spending. This could be because they’re very savvy with their online shopping and look for discounts and cashback for all their purchases,” Clarke said.
A key insight from the survey showed that across demographics, 90% buy on sale or through a promotion. Shoppers are mostly enticed by discounts (73.8%), coupons (32.3%), and rewards (38.9%). Having said that, when it comes to online shopping, 49% prefer online cashback over points schemes.