A recent report has found up to 49 per cent of consumers have changed the way they shop and live as a result of the global financial crisis (GFC), with baby boomers making the biggest changes.
The report, compiled by consumer research company Directional Insights, tracks consumer shopping and lifestyle behaviour across 22 activities such as using shopping lists, watching TV, and entertaining at home.
Helen Bakewell, managing director of Directional Insights says the report shows that households are focused on being more frugal and watching the pennies by reducing how much they splurge on shopping, spend on discretionary items and eating out, whilst increasing their home entertainment like watching TV. Using a shopping list, setting a budget and increasing purchases of homebrands in supermarkets have also increased.
“Right now households are consolidating and looking to where they can make savings, whether or not they have been affected by the GFC. The only areas to remain largely unaffected is how much we spend on groceries, our love for discount department stores like Big W, Kmart and Target, and how much entertaining we do at home – we own the big TV we bought before the GFC impacted, so we might as well invite the friends over and watch it, as we don’t want to spend the money going out.”
Baby boomers are making the biggest changes in cutting back on department store shopping, buying things they like when they see them, splurging, eating out, and are using a shopping list.
Generation X are making similar changes in cutting back on clothing, splurging, department store and cinema visitation, but spending more time at discount department stores. Homebrands are popular with this market along with budget setting and shopping for only what they need with a shopping list.
A quarter of Generation Y have curbed their love of specialty shops and even more are putting a stop to buying things they like when they see them.
“Now is the time for retailers to increase value and service in their offer. We are all mission shopping more, looking for what we need, buying it and then leaving the shops. Making that transaction as stress free and as value orientated as possible to customers is what retailers need to focus on,” said Bakewell.
The survey was undertaken online the weekend prior to the budget announcements by the Australian Government.