CONSUMER BEHAVIOR – AUSTRALIA

Temu & Shein’s Australian customer base keeps growing -as more Australians continue to trade down in the first half of 2024 in response to the cost-of-living crisis

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Original article by Roy Morgan
Market Research Update – Page: Online : 7-Aug-24

New data from Roy Morgan capturing the annual shopper base of these ultra cheap online disruptors shows that 3.8 million Australians aged 14+ have shopped at Temu at least once in the last 12 months, while 2 million have bought from Shein at least once. The research also shows that 80% of Temu shoppers and 76% of Shein shoppers are repeat customers; many are also high frequency buyers, with 48% of Temu shoppers having bought from it four or more times over the last 12 months, compared with 42% of Shein shoppers. Meanwhile, Roy Morgan estimates that Temu and Shein together had close to $3 billion in annual sales in the 12 months to June 2024 – $1.7bn for Temu and $1.1bn for Shein.

CORPORATES
ROY MORGAN LIMITED, TEMU, SHEIN

Amazon Australian adds 1.1 million new customers to its customer base; now 7.9 million Australians shop on Amazon ramping up its status as a threat to all Australian retailers

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Original article by Roy Morgan
Market Research Update – Page: Online : 30-Jul-24

As many retail brands struggle to maintain sales and acquire new customers amid the cost-of-living crisis, Amazon continues to buck the trend by growing its annual customer base by 1.1 million people in the 12 months to June 2024. Research from Roy Morgan shows that 7.9 million Australians aged 14+ now shop on Amazon at least once a year, up from 6.8 million in the year to June 2023. David Jones (-5%) and Target (-7%) have lost the most customers over the last 12 months compared to the previous year, while Big W and Myer are in neutral territory. JB HiFi is the only other retailer to have gained customers, with an increase of 300,000 in the current year. A large proportion of Amazon shoppers are high-frequency customers, with 3 in 10 making a purchase seven or more times over a 12-month period. A mix of all Australians are shopping on Amazon; however, an even split between men (50%) and women (50%) sets Amazon apart from most of its peers which tend to skew towards women. More than half of Amazon’s shoppers are aged 25-39, and its shoppers are more likely than the average Australian to come from higher income households (3 in 10 shoppers live in $200,000+ income households).

CORPORATES
ROY MORGAN LIMITED, AMAZON.COM INCORPORATED

Average home loan surges to record high

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 30 : 9-Jul-24

Data from the Australian Bureau of Statistics shows that the average new home loan for owner-occupiers reached a record high of $626,055 nationally in May. The average size of new home loans reached fresh highs in Queensland, South Australia and Western Australia in May. NSW still boasts the nation’s highest average home loan, at $767,584; however, this is below the state’s peak of $803,235 in early 2022. In contrast, the average home loan in Victoria fell to $601,891 in May, compared with a peak of $651,364 in 2022. Sally Tindall of RateCity notes that home buyers are taking out bigger mortgage loans than ever, despite the cash rate rising to its highest level in 12 years.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, RATECITY PTY LTD

Bargain-savvy shoppers to splash $10 billion on EOFY sales

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Original article by Roy Morgan
Market Research Update – Page: Online : 5-Jun-24

Australian shoppers are tipped to spend $10.1 billion on mid-year/end of financial year sales in 2024, which is up $800 million (8.6%) from 2023, as retailers showcase their mid-year and tax-time promotions in a bid to entice cash-strapped shoppers. The research by the Australian Retailers Association in collaboration with Roy Morgan shows that 27% quarter of Australians (6.2 million people) will participate in the sales, which is 1% higher than last year. They will each spend an average of $1,638 (up $22 per person from 2023); 35% plan on spending more than last year, 43% plan on spending the same and 22% plan on spending less. The ARA-Roy Morgan Snap SMS survey was conducted with an Australian-wide cross-section of 3,301 Australians aged 18+ on 17- 23 May.

CORPORATES
AUSTRALIAN RETAILERS ASSOCIATION, ROY MORGAN LIMITED

Rates pressure, costs keep lid on retail sales

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Original article by Patrick Commins
The Australian – Page: 4 : 29-May-24

Data from the Australian Bureau of Statistics shows that retail sales rose by just 0.1 per cent in April, after falling by 0.4 per cent in March. The seasonally adjusted data also shows that retail sales increased by 1.3 per cent year-on-year in April. UBS chief economist George Tharenou say younger Australians and people with mortgages are primarily reducing their spending, while this is being offset by increased expenditure by older people and households that have no debt. Tharenou adds that the ongoing weakness in retail sales will make it less urgent for the Reserve Bank to increase the cash rate; he still expects an interest rate cut in February.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, UBS HOLDINGS PTY LTD

Coles to expand its private label offering

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Original article by Eli Greenblat
The Australian – Page: 13 & 19 : 1-May-24

Coles Group has reported that its total sales rose by 3.4 per cent to $10.03bn in the March quarter. Its supermarket division’s sales were up 5.1 per cent to $9.07bn, with sales of private label grocery products rising by 8.8 per cent to $3.1bn. In contrast, its liquor store division’s sales fell by 1.9 per cent to $786m. Coles CEO Leah Weckert says cost-of-living pressures weighed on liquor sales during the quarter, but also help boost sales of ‘home brand’ grocery products. Weckert adds that Coles is responding to the latter trend by expanding its range of private label products, including the more premium Coles Finest range.

CORPORATES
COLES GROUP LIMITED – ASX COL

Saying it with flowers tops the $1 billion cash splash on Mum for 12 May

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Original article by Roy Morgan
Market Research Update – Page: Online : 26-Apr-24

Research from the Australian Retailers Association in collaboration with Roy Morgan shows that Australians are set to spend $995 million on Mother’s Day this year; this is up $70 million (or 7.5%) from 2023. Despite the increased spend, some 400,000 fewer people are set to buy Mother’s Day gifts this year, highlighting the impact of the cost-of-living crunch. The higher overall spend is due to a higher spend per person of $102 (up from $92 in 2023), reflecting inflationary driven price increases and indicating that those who are less affected by cost-of-living pressures are spending more. Flowers, alcohol, or an experience top the gifts for mothers and others. Continuing the trend in recent years, 19% of people who purchase a present will be gifting somebody other than their birth mother. This includes their partner, friend, mother-in-law, grandmother, sister or daughter. The ARA-Roy Morgan Snap SMS survey was conducted with an Australian-wide cross-section of 2,191 Australians aged 18+ from 3-5 April.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIAN RETAILERS ASSOCIATION

Over 4.3 million Australians plan to buy a new vehicle in the next four years – with hybrid vehicles up significantly

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Original article by Roy Morgan
Market Research Update – Page: Online : 10-Apr-24

New data from Roy Morgan shows that 4.3 million Australians plan to buy a new vehicle in the next four years. Petrol vehicles are the most popular, with 1,689,000 Australians (39% of new car intenders) planning to purchase one, although this is down 81,000 from a year ago. However, the preference for purchasing a hybrid or fully electric vehicle (1,880,000, up 191,000) in the next four years has overtaken that of petrol cars for the first time. The biggest mover in the past year has been the rising intention to purchase a hybrid (petrol and electric) vehicle, up 154,000 to 1,273,000 (30% of new car intenders) and easily the second most popular type of vehicle on people’s purchasing radar. Meanwhile, some 607,000 Australians intend to purchase a fully electric vehicle in the next four years, up 37,000 from a year ago. In contrast, only 498,000 Australians intend to purchase a diesel vehicle in the next four years, down 130,000 in a year; now only 12% of ‘new car intenders’ plan to buy a diesel vehicle. These are the latest findings from the Roy Morgan Single Source survey, derived from in-depth interviews with over 1,000 Australians each week and well over 60,000 each year.

CORPORATES
ROY MORGAN LIMITED

Sweet spending spree on Easter treats as Australia’s population swells

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Original article by Roy Morgan
Market Research Update – Page: Online : 13-Mar-24

Despite cost-of-living pressures, Australian families will splash out on Easter treats this year, tipped to spend $2.05 billion on hot cross buns, easter eggs or other special food (up 23.5%); this is approximately $400 million more than in 2023. Research from the Australian Retailers Association (ARA), in collaboration with Roy Morgan, shows that 17.3 million Australians plan on buying Easter food and chocolate, up 1 million on a year ago. Despite the increased spend overall, most Australians plan on spending broadly the same amount as last year (63%), with almost a third planning to spend less (29%) and just 8% planning to spend more. Cementing Easter as a family occasion, the 18-34 age bracket will spend the most on treats at $800 million across the country, for an average spend of $136 per head. They are trailed by the 35-49 demographic, who will spend $560 million, or $122 per head. The ARA-Roy Morgan Snap SMS survey was conducted with an Australian-wide cross-section of 2,350 Australians aged 18+ from 23-28 February.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIAN RETAILERS ASSOCIATION

Australians share the Valentine’s Day love today

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Original article by
Australian Retailers Association – Page: Online : 14-Feb-24

Research from the Australian Retailers Association, in conjunction with Roy Morgan, shows that 3.4 million Australians will spend an average of $135 per head on Valentine’s Day gifts in 2024, up from $118 in 2023. In total, Australians are predicted to spend $465 million on traditional gifts for loved ones, as well as gifts for themselves. ARA CEO Paul Zahra has highlighted the importance of inclusivity in the traditional Valentine’s gifting experience this year, noting the opportunity for all individuals to use the day as a time of self-appreciation. Amongst the top gifts of choice for survey respondents this year are flowers, chocolates and hospitality outings.

CORPORATES
AUSTRALIAN RETAILERS ASSOCIATION, ROY MORGAN LIMITED