Shoppers may be higher on confidence, but retailers could win even more of today’s confident customers according to key findings from the Recommend Retail Practice (RRP) report, released by Amp Capital Shopping Centres (AMPCSC).
The RRP report, conducted by Directional Insights, finds consumers are shopping with a new mindset. The report reveals what they won’t give up during economic hardship and shows their purchases must satisfy at least one of three criteria: safe, savvy or sensible.
With 46 per cent of shoppers intending to spend less across 17 everyday retail categories than February this year, Australian retailers are being urged to be alert to this changing consumer behaviour. The report finds that one in two Australians will not give up wardrobe items like a good fitting pair of jeans and eight in 10 Aussies won’t give up quality fruit and vegetables.
“Consumers’ intent to spend is up slightly from February,” said Helen Bakewell, managing director of Directional Insights.
“However, they remain cautious and are spending much more time researching the item, shopping around for best value or service and being selective with where they spend their money.
“We are seeing from consumers, particularly the female shopper, a new set of terms under which they are now prepared to exchange their cash for a commodity. The trend is towards purchases that meet at least one of the three criteria: safe; savvy or sensible,” said Bakewell.
“It’s imperative that retailers understand their customers’ needs and aspirations intimately and employ staff who are ready, willing and trained to satisfy these customer needs.”
Stuart Langeveldt, head of marketing and communication at AMPCSC, believes understanding consumer behaviour and intent is one way that the shopping centre owner can offer ongoing support to its retailers.
“As females account for 70 per cent of shoppers in shopping centres and even more of the retail dollar, understanding their needs is more important than ever,” said Langeveldt.
The report also found:
· 46 per cent of people plan to spend less on eating out in the coming months, which is down from 57 per cent in February
· 33 per cent intend to spend less on hairdressers, beauticians, nail bars and massage, while 48 per cent intend to spend the same
· 41 per cent intend to spend less on household goods like TVs, small electrical, kitchenware and homewares while 44 per cent spend the same as usual
· 51 per cent intend to spend the same or more than this time last year on technology e.g. mobile phones, computers, gaming and portable music devices e.g. iPods, MP3s.