An IRI study has shown that a third of Australian households believe they are worse off financially than a year ago.
Forty per cent of households stated that they had to cut back to save money and predicted their economic situations would worsen. Purchasing patterns have been affected by this downturn in confidence, with cutbacks in budgets, searching for specials, and every dollar spent increasingly watched. Twenty-nine per cent of those surveyed said they were giving up their favourite brands to save money.
“While 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,” IRI Senior Consultant Johnny Gorman said.
“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.”