Australia’s cost squeeze is turning shoppers into value hunters
Australian households are being squeezed by a cost-of-living crunch.
Australian shoppers are increasingly seeking value due to rising living costs and a weakening property market, according to recent earnings reports. Myles Gollant, a Melbourne plumber, and his wife, who purchased a home before their wedding, now prefer buying second-hand items. Budget-conscious consumers are choosing cheaper home-brand groceries and dining out less frequently, impacting restaurant chains.
Wesfarmers' Kmart and Big W, owned by Woolworths Group, have remained profitable, while Coles Group's own-label sales grew 6.1 per cent. However, furniture retailer Nick Scali reported a 15 per cent fall in store traffic due to the housing slowdown. JB Hi-Fi's shares hit their lowest since 2020 as sales missed estimates. Australian households are being squeezed by inflation and higher borrowing costs, with 75 per cent of surveyed Australians reporting financial stress.
Retailers are responding by offering promotions, low prices, and payment plans, with Woolworths' Disney Ooshies campaign seeing sales growth. Despite a short-term boost, cost-of-living pressures are expected to continue affecting consumer spending patterns.
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