While the rising cost-of-living continues to challenge Australians, new research from ShopFully, in collaboration with YouGov, highlights that a love for spontaneous shopping remains strong.
Despite financial pressures, 80% of Australian adults have indulged in an impulse purchase while in-store, since the beginning of 2024, with over one-third (36%) doing so in the last week.
Along with 80% of shoppers who made an unplanned purchase since the start of the year, a near unanimous 92% of Australians have admitted to buying something impulsively at any point.
“While it’s fairly normal to believe almost all of Australian adults have purchased something impulsively at some point in their lives, it’s extraordinary to see over a third (36%) of Australians have made an impulse purchase in just this past week,” ShopFully country manager for APAC, Brendan Straw said.
“This prevalence of spontaneous spending highlights just how impulsive we can be as shoppers, even suggesting a growing behavioural trend, despite economic pressures currently affecting the nation.”
The study found this habit is quite similar across genders and generations, however the younger generations are more likely to have made an impulsive purchasing decision since the start of the year, with Gen Z (88%) most prevalent, followed by Millennials (83%), Gen X (81%) and Baby Boomers (73%).
Households with children at home, under the years of 18, are more likely to have made an in-store impulse purchase at some point in 2024 (84%) compared to those without (77%).
“Given their dynamic lifestyles and varied needs, it makes sense that younger generations and families with young children are more inclined towards impulsive shopping. This trend suggests that as these demographics continue to grow, retailers can expect a sustained or even increased pattern of impulse purchasing in the coming years,” Straw said.
In the same vein, the recent YouGov survey revealed eight in 10 Australians (81%) spend money on items or services without considering the cost, with the most common purchase in this category clothes and accessories (27%), coffee (25%), and takeaway (24%). Household items and dining out also featured prominently.
“It’s fascinating to see how small indulgences such as coffee and takeaway remain a priority, reflecting the value these ‘luxuries’ bring to our daily lives. Even in the face of rising living costs, it’s clear that these simple pleasures continue to hold significant importance for many Australians,” Straw said.
Generationally younger adults (Gen Z, Millennials and Gen X) are more likely to spend without considering the price compared to Baby Boomers. Gen Z, in particular leads this trend in spending on restaurants (37%) and toiletries/beauty products (26%).
Opportunity for retailers
This data shows us that retailers and brands not only need to focus on the first steps of the funnel, when people are looking for products, discovering new brands or shops, but also on the last steps, when they are approaching or inside the store.
“Retailers could leverage this tendency for impulse purchases by strategically placing enticing products at checkout counters and along store aisles, making them more visible to the shopper. Additional promotions offered through an omnichannel approach, and in-store marketing tailored to families and younger generations could also be a strategy to further boost impromptu sales,” Straw said.
“Impulse shopping and spontaneous spending indicate a dynamic retail environment where consumers seek immediate gratification and convenience, even amidst a cost-of-living crisis. For retailers, this means crafting a shopping experience that is both enjoyable and strategically designed to cater to these impulses.
“By encouraging customers to visit their stores, businesses can capitalise on the high rate of in-store impulse buying, providing value and deals that appeal to budget-conscious shoppers, while also strengthening customer relationships. This approach is crucial for cultivating long-term clients in challenging economic times.”