Shoppers still on a budget after GFC

Retailers are being urged to find ways to appeal to “cost conscious” buyers, with many Australian women now shopping on a budget and remaining careful of their retail spend, a consumer shopping study has revealed. The latest Shopping Intent Survey from AMP Capital Shopping Centres, showed female shoppers in Sydney, Melbourne and Brisbane remain “super careful, fragile and realistic” about purchases made for themselves and their families as a direct result of the GFC and threat of looming interest-rate rises. In fact, almost 50% of Australians said they now used a budget to manage their spending. Despite approaching purchases – big and small – with caution, the survey, conducted at the end of February, also shows evidence of a renewed confidence
in discretionary spend this year. “The past 12 months shows a gradual trend back to more considered spending,” said Helen Bakewell, MD of Directional Insights, which conducted the study. “Retailers have reason to be optimistic but they will need to be patient as many shoppers are still cautious about what lies around the corner.” The survey ranked shoppers’ intentions as spending “less”, “the same” or “more”, and showed those retail categories hit hardest last year were showing signs of growth. The number of people spending the same or more on eating out in cafes and restaurants rose to 55%, compared to 35% in the same period last year, whereas 65% said they are spending the same or more on clothing, shoes and accessories and 35% spending less, compared to 55% saying they would spend less last year. In 2010, consumers are likely to be spending big on technology items such as iPods and mobile phones, inexpensive fashion, lottery tickets, and holidays within Australia. Stuart Langeveldt, head of marketing and communications at AMP Capital Shopping Centres added people in Melbourne are expected to be dining out more this year, in Sydney people will be boarding more planes overseas and in Brisbane people will be entertaining at home
more in the next 12 months. “These findings reveal interesting insights on Australians’ perceived optimism towards the market, and the retail categories in which we can expect to see recovery gather pace in the year ahead,” he said. “In the meantime, retailers will need to find innovative ways to appeal to cost conscious buyers.” The research revealed younger shoppers, aged 18 to 24, are leading the retail revival, with shoppers in Sydney and Melbourne spending more confidently than those in Brisbane.

Written by CELIA JOHNSON for B&T Online