According to a recent report released by AMP Capital Shopping Centres, Australian consumers haven’t stopped shopping, they have just changed their habits and mindset.
The Recommended Retail Practice report conducted by Directional Insights and AMP Capital Shopping Centres, has revealed that consumers are now shopping with a new mindset revolving around the fact that purchases must satisfy one of three criteria: safe, savvy and sensible.
“Consumers’ intent to spend is up slightly from February. However, they remain cautious and are spending much more time researching the item, shopping around for best value or service and being selective with where they spend their money,” said Helen Bakewell, managing director of directional insights.
“We are seeing from consumers, particularly the female shopper, a new set of terms under which they are now prepared to exchange their cash for a commodity. The trend is towards purchases that meet at least one of the three criteria: safe; savvy or sensible.”
According to the report, 46 per cent of shoppers are intending to spend less across 17 everyday retail categories than February this year. Bakewell commented on how retailers must respond to these new findings.
“It’s imperative that retailers understand their customers’ needs and aspirations intimately and employ staff who are ready, willing and trained to satisfy these customer needs,” she said.
According to the results, 41 per cent of consumers intend to spend less on household goods like TVs, small electrical, kitchenware and homewares; 44 per cent plan on spending the same amount.
In terms of technology like mobile phones, computers, gaming and portable music devices, 51 per cent of consumers plan on spending the same or more than this time last year.