There’s good news for the retail industry as new research suggest that more than half of Australian shoppers will spend more in the second half of 2015 than the first, as they predict their expenditure through till the end of the year.
In addition, 58 per cent will spend more in 2015 compared with 2014, including both online and in-store shopping (not including groceries).
The findings come from a survey of an independent panel of 1000 Australians commissioned by Cashrewards, reflecting consumer confidence and good news for the Australian retail sector in the lead-up to Christmas 2015.
Andrew Clarke, founder of Cashrewards, Australia’s biggest cashback website, with over 700 retailers available through its shopping platform, says, “The outlook for retailers through till the end of 2015 is looking positive. Spending has always been a barometer of consumer confidence in the economy, and low interest rates may be a contributing factor towards the positive sentiment about spending.”
Consumers are ready to spend more
NSW residents are slightly more confident about the economy than those in other states, with 61 per cent saying they will spend more this year, followed by 58 per cent of Victorians, 58 per cent of Queenslanders, 56 per cent of West Australians and 56 per cent of South Australians.
The 2015 spend trend is dominated by the 18-24 age bracket, with 64 per cent saying they will spend more this year than last. Not surprisingly, they are also the age bracket that plan to increase their online spending the most by the end of 2015 (38 per cent of respondents), in contrast to the over-55s, 37 per cent of which will spend more in-store.
In line with the increased online spending by younger demographics, the survey revealed that the 18-25s age bracket is the one most motivated by online cashback incentives (59 per cent), followed by 25-44s (55 per cent), then 45-54s (49 per cent), and over 55s (38 per cent).
“The fluctuating employment rate and Australian dollar certainly don’t seem to have deterred spending by the 18-25s, which may indicate that this age bracket isn’t as affected – or just that they don’t allow it to affect their planned spending. This could be because they’re very savvy with their online shopping and look for discounts and cashback for all their purchases,” comments Clarke.
A key insight from the survey showed that across demographics, 90 per cent buy on sale or through a promotion. Shoppers are mostly enticed by discounts (73.8 per cent), coupons (32.3 per cent), and rewards (38.9 per cent). Having said that, when it comes to online shopping, 49 per cent prefer online cashback over points schemes.
How does Cashrewards work?
The online cashback concept is easy. With over 700 retailers across categories, Cashrewards offers Australia’s highest cashback rates. It’s free to join and members can browse, compare prices, and get on average 10-20 per cent cashback on every item purchased; adding coupons to special discounts, shoppers can save up to 50 per cent.
Shoppers simply click through cashrewards.com.au to the retailer website of their choice to purchase as usual, then Cashrewards credits the cashback directly into the shopper’s nominated bank account. Unlike points schemes, cashback means actual cash back to the shopper, rather than waiting for points to accrue for a reward.
New deals are available daily, from big name Australian and international retailers including: Woolworths, Coles, eBay, Chemist Warehouse, Priceline, The ICONIC, ASOS, David Jones, Saks Fifth Avenue, Lorna Jane, Virgin Australia, Telstra, Vodafone, Booking.com, Avis, Microsoft, Sony, Groupon, Living Social, Dan Murphy’s, Uber, Menulog and EatNow, to name just a few.