New research from the Monash Business School’s Australian Consumer and Retail Studies (ACRS) has revealed the cost-of-living crisis remains top of mind for many Australian consumers, with 62 per cent of shoppers surveyed confirming they spent more on housing (e.g. rent, mortgage, utility bills) compared to the same time last year.
For the second year running, ACRS ran a pulse survey to determine Australian consumers’ retail attitudes towards cost of living pressures and how their purchasing habits had changed since the same time last year.
Led by Dr Eloise Zoppos, the research found that many Australian shoppers are spending more on necessities like housing, insurance and groceries and are spending about the same or less on discretionary items like apparel; and of that over half of Australian shoppers believe that many of these items cost more than they did at the same time last year and, in some cases, believe that these prices are unfair.
Among the report’s key findings:
- 57 per cent of survey participants said they spent more on groceries compared to the same time last year
- 58 per cent view grocery prices as unfair
- 58 per cent are holding off or deferring purchases until sales or special deals more than at the same time last year
- 52 per cent are holding off or deferring purchases indefinitely
- 82 per cent are saving at least a portion of their monthly income
- Of those who do save, 36 per cent of these people save 10 per cent or less of their monthly income.
“Our research found that over half of Australians (69 per cent) feel that groceries and grocery-related products cost more at the time of the survey than at the same time last year, and a similar sentiment was evident when it comes to housing costs including rent, mortgage repayments and utility bills (67 per cent) and insurance prices (66 per cent),” Dr Zoppos said.
“Compared to the same time last year, many Australian shoppers report that they are spending more across essential categories. For example, over half of shoppers reported that they spent more on housing (62 per cent), insurance (60 per cent) and groceries (57 per cent) than at the same time last year – and the latter had increased from 49 per cent when we asked the same question in 2023.
“The essential categories were the most likely to be seen by Australian shoppers as unfairly priced, with over half viewing housing costs (58 per cent), groceries and related products (also 58 per cent) and insurance costs (57 per cent) as being unfair.”
The survey also found more than half of Australian shoppers (58 per cent) reportedly hold off or defer purchases until they are on sale more now than they did at the same time last year.
“It is clear that many Aussies are revisiting their usual spending habits, so this year we also asked Australian shoppers about their saving habits,” Dr Zoppos said.
“We found that 82 per cent are saving at least a portion of their monthly income – although unfortunately this means that 18 per cent are unable or choosing not to save at all.
“Of those who do save some of their monthly income, 36 per cent of these people save 10 per cent or less of their monthly income. The most popular savings methods were traditional savings accounts (71 per cent), high interest savings accounts (28 per cent), shares (24 per cent), saving physical cash (20 per cent), and fixed interest investments (19 per cent).”
-ENDS-
MEDIA ENQUIRIES
Dr Eloise Zoppos, Monash Business School
T: +61 412 170 809 E: eloise.zoppos@monash.edu
For more Monash media stories visit our news & events site: monash.edu/news
For other expert comment, contact the Monash University Media Unit on +61 3 9903 4840 or media@monash.edu
Note about the research: ACRS’ shopper satisfaction research program continually monitors shoppers’ retail experience throughout the year. The data featured in this article was collected from n=392 randomly selected Australian shoppers during the month of April 2024.
