In the 12 months to September, consumers started to rein in spending on certain discretionary categories with department stores declining 3 per cent and specialty retail dropping 6 per cent in the same period. But that is not the whole story.
Amid a constant stream of news reminding us to be frugal, many Australian consumers are displaying resourcefulness – suggesting their economic situation may not as dire as first thought.
Savvy shoppers are seeking better deals for things they’re already spending on, including mobile plans, energy services and household necessities. While searching for a better deal requires effort, it can be a valuable strategy for offsetting budget pressures.
Consequently, more people are turning to cashback programs to secure better deals while shopping. Just a few years ago, inflation wasn't a topic that dominated discussions and chasing an 8 per cent discount would not have been a top priority for consumers.
However, with inflation now pushing up the price of consumer goods and other items, consumers are turning to cashback programs, especially on larger purchases.
ANZ customers can access cash back platform Cashrewards in the ANZ App, to help them earn a portion of their spend back in cash when they withdraw it from their Cashrewards account into their bank account.
“Shoppers appear to be more cautious in their spend on some retail categories, but travel and experiences continue to grow. We see Cashrewards members diligently looking for the best deals possible,” said Cashrewards Chief Executive Officer Anthony Seymour-Walsh.
Consumers are timing their purchases to coincide with sales and events promoting higher cash returns to maximise the value of their purchases. Additionally, the rise of marketplace sellers like Amazon, eBay, MyDeal and newcomer Temu indicates consumers are actively seeking the most favourable deals.
Shifting spending behaviour
Rather than reducing their expenditure on sectors like travel, fashion and retail, consumers are using programs like Cashrewards to make the most of their spending.
Making better use of your existing resources is at the heart of financial wellbeing. While it may not appear substantial at first glance, securing the best possible deals when shopping is an effective way to boost your savings growth over time.
Sweta Mehra is Managing Director of Everyday Banking at ANZ