Retailers are advised to offer customers better deals and services or risk losing them to cheaper vendors, in new research from leading parcel delivery service, CouriersPlease, with more than eight in 10 (85%) Australians saying they will delay upgrading or reduce their spend on new purchases this year. When purchases are required, consumers will be more likely to buy from cheaper brands.
Out of all categories, personal electronic devices such as personal computers and smartphones topped the list, with over half of respondents (55%) indicating they will delay their spending in this category.
However, this percentage response varies across age groups, with a higher proportion (62%) of under 30s adults unlikely to spend money on a new personal device. This compares with 57% of those aged 31 to 50s and 50% of over 50s.
Second on the list is fashion and beauty, with 48% of consumers forecasting less spend; closely followed by furniture and homewares, chosen by 47%; then household electronic devices (TVs, speakers, security systems), chosen by 46%. Leisure and recreational goods came in fifth, with 44% admitting they would delay upgrading or reduce spend on these items.
CouriersPlease CEO, Richard Thame says selective spending by consumers as household budgets tighten is an opportunity for many retailers. “The majority of consumers are having to cut back, but from our research it’s clear that certain items are still a priority. Retailers could, where possible, offer more affordable items in these categories or provide incentives for customers that are closely minding their dollars.”