Generation Y is leading Australia’s new discount driven shopping culture with more than one in two under 25 year olds waiting until the sales to do their shopping, according to a survey conducted by the Australian National Retailers Association (ANRA) and American Express.
The national survey of 1000 Australians revealed that 53 per cent of 18-24 year olds put shopping on hold until the June sales rolled around compared to only 37 per cent of the general population.
ANRA chief executive Margy Osmond said the results showed young people have a different approach to shopping than older Australians and have taken up the call to ‘never pay retail’.
“For instance, when they were making clothes purchases almost two-thirds (65 per cent) of teens and those in their early 20s purchased when items were only or mainly on sale, taking advantage of the regular discounting of recent times,” she said.
“But despite their desire to grab a bargain, Gen Y remain fashion conscious. Overall 12 per cent of Australians have not bought any clothing in the past six months, but only seven per cent of 18-24 year olds could resist being tempted by the latest fashions.”
This age group was also more devoted to leisure. Overall 23 per cent of Australians had put off buying books or music in the past six months while only 15 per cent of young people made the same choice. However, half of 18-24 year olds only bought leisure goods when they were only or mainly on sale.
“Under 25s also have different priorities when it comes to what areas to cut back on when they need to tighten their belts. Almost three-quarters of the general population said they would reduce spending on entertainment first, but only two-thirds of 18-24 year olds were prepared to make the same sacrifice.
“Young people buy differently and cut costs differently to the rest of Australia. They are committed to buying on sale, reluctant to alter their lifestyle and leisure buying habits and keen to keep up with trends,” said Osmond.
Geoff Begg, vice president merchant services Australia at American Express, said much of the spending in the retail sector can be attributed to the deep discounting offered by retailers, a point demonstrated it the most recent Consumer Price Index figures released by the ABS.
“Due to the flood of sales, customers have become more savvy in the way they pay for purchases – looking for the greatest cost saving, taking advantage of benefits such as extended warranties and refund protection. While it’s great news for consumers, it is starting to take its toll on retailers.
“The good news is that spend data is robust which indicates that American Express Card members are starting to spend again post GFC, albeit cautiously,” he said.