Cautious consumer confidence impacting Australian’s ‘household economies’

Sydney, 19th July 2016 – An IRI study of Australian households has found that one third of households claim they are worse off financially than they were a year ago. 40% of households also state that they have had to cut back to save money and are predicting that their economic situations will worsen.

This is having a dramatic impact on purchasing behaviour for many households.  This includes making necessary cutbacks in their budgets, searching for specials both before and during their shopping trips and ultimately watching where every cent is spent.

“Whilst the Australian economy has fared a lot better than other developed economies, we are seeing a change in shopping behaviour which is changing not only where Australians shop but also what and how they are purchasing in store particularly with the continued expansion of Aldi and the increased focus being put onto private Label” says Johnny Gorman, Senior Consultant at IRI.

In addition, we see many households feeling the “pinch” making purchasing decisions based on the item price and what products best represent value for money.

The study also shows that 29% of Australians are giving up their favourite brands to save money, with more than half of Australians making their personal care items last longer.

“Understanding how shoppers are reacting and adapting to the current economic conditions opens up opportunities for brand manufacturers and retailers to cater to these changes and be better able to meet shopper needs within the Australian market” 
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For more information
Kirrin Barakat,
Marketing & Communications Manager, IRI
Email: Kirrin.Barakat@IRIworldwide.com.au  Phone: +61 2 8789 4000

Johnny Gorman
Senior Consultant – Consumer & Shopper, IRI
Email: Johnny.Gorman@IRIworldwide.com.au  Phone: +61 434 619 503

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