Latest consumer data suggests summer holiday spending will be subdued, with buyers more inclined to seek essential items that offer genuine value for money, presenting opportunities for fresh food suppliers looking to build loyalty to their brands.
The latest snapshot of consumer sentiment has 41 per cent of those surveyed committed to spending less than they did at the same time last year, as the retail sector braces for a possible hit to festive season revenue in what is traditionally the busiest period in the retail calendar.
The data collated by EY Consulting in November showed eight out of 10 consumers were cautious or concerned about their current financial position, and four out of five Australians identifying cost of living pressures as highest on their list of worries.
Nearly half (48 per cent) said they were limiting their purchases to ‘essentials’ only, while 72 per cent said they would focus purely on items offering ‘value for money’.
The latest results reflect 2023’s steady decline of consumer sentiment that is showing little sign of recovery moving into 2024 amid rising cost of living, wage growth stagnation in real terms and a succession of interest rate rises putting the squeeze on mortgage holders and household budgets.