Aussies in ‘great cut back’

More than half of Australians are concerned about their financial situation – and are switching to cheaper brands as a result. 

That’s according to Retail Evolution 2023, a report* from dentsu which highlights the economy as the main concern for many Australians (cited by 30%), well ahead of climate change (15%) or the housing market (14%).

What consumers are (or aren’t) doing

• Sixty percent say they are cooking more meals at home, while 54% are purchasing cheaper groceries, with 46% switching to cheaper brands and 43% switching to home / white-label brands.
• More than half (54%) are dining out less frequently, and 45% are dining out at cheaper establishments.
• Major purchases are being delayed (49%) and out-of-home entertainment is being cut back (48%), as is international and domestic travel (44%). 
• Four in 10 are cutting back on paid gym / sports fees and 35% are purchasing more, or have started to purchase, second-hand items. 

Why it matters

Brands and retailers will probably need to change tack in the short term to address the concerns that are leading to changed consumer behaviour. Sustainable actions, for example, are looking less like a lifestyle choice than an economic necessity. But the “great cut back” could be short-lived: the outlook over the next six months appears more positive, as 39% indicated they didn’t intend to cut down on expenses, compared to 22% today.

*analysis is based on the findings of dentsu’s regular DISCUS online panel survey

Sourced from dentsu