It has been found in an Australian National Retailers Association survey that consumers will cut their discretionary spending by 21 per cent over the next six months, but the survey has found that people aged 18 to 34 are less likely to take such drastic measures.
The survey asked 1000 Australians over the age of 18, about their planned spending habits on discretionary items over the next six months, compared to the same time last year.
The results showed that the most ruthless proved to be ‘empty nesters’ aged 55 to 64, who with their shrinking nest eggs plan to cut back an average of 35 per cent on spending.
But in contrast, young people aged 18 to 24 are only planning on cutting back 16 per cent and the 25 to 34 category are on average only reducing spending by 15 per cent.
Australian National Retailers Association CEO, Margy Osmond, stated “the results have proven that generation X and Y are less likely to switch off their spending. But with the slump in super and share portfolios, Australians aged 55 to 64 obviously are cutting back.”
But the most startling fact to emerge from this survey is that one group of Australians are only planning on cutting back a measly 9 per cent over the first half of 2009.
Women who live in the countries fashion capital, Melbourne, are barely even factoring in the recent economic crisis and Osmond comments this to the fact that they have so much more temptation.
“Melbourne’s women cannot escape the lure of new shoes, bags and clothes, especially compared to ladies in Sydney who say they’ll cut their spending by 18 per cent,” she said.
Understandably everyone across the country is cutting back in some regards over 2009, but these results are promising, due to the fact that some demographics seem to be a lot easier to crack when it comes to convincing them to part with their hard earned dollar.