Cost of Living & Consumer Deviance Spotlight | 2023 Report | ACRS by Monash Business School - Monash University

Cost of Living & Consumer Deviance

Spotlight 2023 Report

In June 2023, ACRS surveyed 1,001 shoppers across Australia and asked them several key questions on cost of living and consumer deviance as part of a larger survey on retail consumer attitudes and behaviours.

Note: Percentages may not add up to 100% due to rounding.

18 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65+ AGE

69% 51% 31% 49% FEMALE MALE METRO

11% 1% 19% 8% 32% 25% 2% 2% 13% 18% 19% 17% 15% 17% 2

REGIONAL

Shoppers are pessimistic about their personal finances and business conditions.

Amongst all age groups, middle aged consumers are the most pessimistic about their current financial situations.

of shoppers report that they are financially worse off compared to a year ago

feel it is a bad time to buy big household items such as furniture, refrigerators and televisions

expect to be in the same financial position or worse off in the next 12 months

believe bad financial times are ahead for businesses over the next 12 months and 37% expect poor business conditions over the next five years

% 77% 49%

4 35-54 years: 57% 35-54 years: 50% ↑ ↑

50%

Shoppers are spending more on essentials such as housing, groceries and insurance. However, most basket sizes are the same over the past six months.

Moreover, shoppers are cutting back on non-essentials such as takeaway and clothing.

Housing (e.g., rent, mortgage, utility bills)

Changes in non-discretionary spending

Essential grocery and related products (e.g., bread, milk, vegetables, meat)

Insurance (e.g., home, vehicle, health)

Essential household (e.g., cleaning and maintenance equipment)

Health (e.g., dental, pharmaceutical)

Essential automotive (e.g., fuel, repairs)

Essential personal care (e.g., baby care)

Communication (e.g., postal, telecommunication)

Increased About the same

Decreased N/A - I did not spend on these goods

Note: Percentages may not add up to 100% due to rounding.

63% 60% 58% 41% 41% 39% 38% 28% 24% 24% 28% 40% 42% 33% 38% 51% 6% 15% 6% 17% 15% 21% 11% 17% 6% 0% 8% 2% 3% 7% 13% 4%

Majority of shoppers reported non-discretionary spending increased or stayed the same in the past six months, with housing, groceries and insurances increasing considerably

While spending increased or stayed the same, close to a half of shoppers reported that basket sizes of essentials stayed the same in the last six months

Note: Only those who made non-discretionary purchases in relevant categories responded to this question, therefore sample sizes vary; Sample sizes between 872 and 996; Percentages may not add up to 100% due to rounding.

35% 54% 11% 28% 44% 29% Insurance Essential grocery and related products 26% 25% 20% 27% 17% 50% 53% 52% 52% 60% 25% 22% 28% 21% 24% Essential household Health Essential automotive Essential personal care Communication Increased About the same Decreased Housing

Changes in non-discretionary basket sizes 40% 48% 12%

Non-essential grocery and related products (e.g., cakes, biscuits, confectionary)

Takeaway and restaurant meals

Non-essential personal care (e.g., cosmetics)

Clothing, footwear and accessories

Travel and tourism (e.g., air travel, hotels)

Non-essential household (e.g., hardware, textiles, appliances)

Non-essential automotive (e.g., vehicles parts)

Media and entertainment (e.g., gaming, multimedia)

Consumer electronics (e.g., smartphones, laptops, tablet)

Alcohol and tobacco

Books and stationery

Sporting goods and equipment

Toys and games

38% 28% 26% 25% 25% 24% 23% 22% 22% 19% 19% 19% 18% 37% 28% 45% 37% 25% 34% 38% 35% 36% 29% 36% 26% 24% 24% 37% 25% 35% 29% 31% 22% 27% 33% 24% 28% 22% 24% 1% 8% 4% 3% 21% 10% 17% 16% 10% 27% 17% 33% 33%

Majority of shoppers reported they spent about the same, less or did not purchase certain discretionary products in the past six months

Increased About the same Decreased N/A - I did not spend on these goods 8

not add up to 100% due to

Note: Percentages may

rounding.

Changes in discretionary spending

Similar to discretionary spending, majority of shoppers reported that basket sizes of non-essentials stayed the same or decreased in the last six months

Note: Only those who made discretionary purchases in relevant categories responded to this question, therefore sample sizes vary; Sample sizes between 669 and 992; Percentages may not add up to 100% due to rounding.

19% 50% 32% 21% 38% 41% 25% 44% 32% 9

19% 23% 18% 18% 19% 17% 20% 17% 21% 22% 41% 38% 44% 49% 48% 44% 45% 44% 42% 41% 39% 39% 38% 32% 34% 39% 34% 40% 36% 37% Clothing, footwear and accessories Travel and tourism Non-essential household Non-essential automotive Media and entertainment Consumer electronics Alcohol and tobacco Books and stationery Sporting goods and equipment Toys and games Increased About the same Decreased Changes in discretionary basket sizes Non-essential personal care Takeaway and restaurant meals Non-essential grocery and related products

Shoplifting has re-entered the spotlight amid the increased cost of living. Shoplifting is only one form of consumer deviance that negatively impacts retailers.

We asked shoppers how justifiable a range of deviant behaviours are given the economic climate, and the results are surprising.

Tasting fruit in a supermarket and not buying

Justifiability of deviant consumer behaviours: Theft

Taking supplies from your place of employment

Scanning items as cheaper items when using self-checkout terminals

Evading fares on public transport

Not scanning some items when using self-checkout terminals

Changing price tags on products in a retail store

Taking an item without paying for it

Not at all justifiable A little justifiable Somewhat justifiable Very justifiable Completely justifiable

Note: Percentages may not add up to 100% due to rounding.

57% 59% 64% 65% 68% 69% 72% 14% 14% 9% 9% 7% 6% 5% 14% 13% 13% 11% 12% 12% 9% 10% 8% 9% 8% 8% 7% 9% 6% 5% 6% 6% 5% 5% 5%

Across blatant forms of theft, a quarter or more of shoppers believe that theft is a little to completely justifiable

Tasting fruit in a supermarket and not buying it

Justifiability of deviant consumer behaviours: Theft

Taking supplies from your place of employment

Scanning items as cheaper items when using self-checkout terminals

Evading fares on public transport

Not scanning some items when using self-checkout terminals

Changing price tags on products in a retail store

Taking an item without paying for it

Note: Percentages may not add up to 100% due to rounding.

77% 83% 85% 89% 88% 90% 93% 23% 17% 15% 11% 12% 10% 7%

(55+ years

age)

Older consumers

35% 33% 39% 37% 43% 45% 47% 65% 67% 61% 63% 57% 55% 53% Not at all justifiable A little to completely justifiable Younger consumers (18-34 years of age)

Significantly more older consumers reported that forms of theft are not at all justifiable compared to other age groups, while significantly more younger consumers indicated that they are a little to completely justifiable

Note: Percentages may not add up to 100% due to rounding.

33% 19% 18% 17% 13% 41% 18% 19% 12% 11% 50% 16% 16% 10% 6% Claim a price is better at a competing retailer in order to get a discount Lying about a child's age in order to get a cheaper price Creating multiple email accounts to redeem retailer ‘one-time’ offers 13

Half or more of shoppers consider manipulating deals and promotions to be a little to completely justifiable

Justifiability of deviant consumer behaviours: Deals and promotions

52% 13% 15% 12% 7% 64% 10% 12% 9% 5% Returning used goods for a refund Buying items for single use, and then returning them 14

Percentages may not add up to 100% due to rounding.

of deviant consumer behaviours: Returns

Over a third of shoppers consider questionable returns to be a little to completely justifiable

Note:

Justifiability

CONSUMER & RETAIL STUDIES

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acrs@monash.edu

monash.edu/business/acrs