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Survey Results: Consumer Confidence Peaks
The latest consumer survey shows that intent to spend more online is the highest it has been all year. What’s next for retailers?
While NSW experienced ‘freedom day’ this week and Victoria has its roadmap out of lockdown, intent to spend more online next month is the highest it has been all year.
According the most recent Power Retail data, 34% of Australian online consumers plan to increase their online spend next month. There has been a gradual increase month-on-month, up from a low of 21% in January 2021. The majority (82%) plan to spend the same or more online next month, with only a small minority (18%) planning to decrease spend. This is the same trend we saw emerge last year, with intent to spend more online increasing in October and peaking in November inline with sales events such as Black Friday, Cyber Monday and Click Frenzy.
Interestingly, while we can see that an increase in intent to spend online may be seasonal ahead of the holiday and sales period, intent to spend the same or more online has remained fairly stable—after a predictable post-Christmas January decrease—from February onwards, hovering around the 80% to 83% mark. What this shows is that the pandemic may have pushed people online in 2020, however they’re now here to stay. Online shopping spend hasn’t shown enormous reactivity in response to lockdowns or easing of restrictions. Shoppers are online and here to stay.
Retailers need to be prepared for the coming months, with online spend set to soar. It isn’t just about capitalising on holiday and sales-season spend, but ensuring there is a retention strategy in place to capture shoppers who will be online in 2022 and beyond.
Power Retail surveys thousands of Australian online shoppers each fortnight. Switched On members gain access to exclusive retailer and consumer data and insights, including regular Trajectory Reports which analyse the latest findings.
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