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A recent trends report by PayPal reveals that while young Australians are becoming smarter in saving their precious dollars, they are also overspending during sales season.
PayPal’s EOFY Sales Trends Report 2021 reveals that millennials are the biggest impulse spenders in Australia after they racked up an average of 3.4 unplanned items worth $197 in the last three months.
- Over 55% of millennials and 61% of Gen Z admitted to deferring shopping until prices reduced.
- 63% of millennials and 80% of Gen Z said they always look for sales or discounts.
The report found that millennials are most likely to have returned an item after buying it at full price and then repurchased it on sale for a lesser price. Across the board, 50% of Australian customers said they hate paying the full price.
Even when buying in-store, two-fifths of Australians (40%) admit to checking online prices on their phones to make sure they are getting the best bargain.
PayPal’s Consumer Shopping Expert, Jessica Rix said: “Everyone loves getting a good deal, and it’s great to see how Aussie millennials are becoming increasingly savvy in scouting out discounts when they shop.
“As the sales cycle gets busier than before, we’re seeing more millennial shoppers looking for deals to make their dollars go further.”
On the flip side, this means millennial shoppers can be reluctant to spend outside of sales season.
“We found over a quarter (27%) saying they only shop when items are on sale or discounted with only one in ten (10%) saying they don’t care whether items are on sale or not.”
The study further found that while slightly more Australians prefer to shop the sales in-store (55%), the scales are shifting, with the majority choosing to shop the sales online (51%).
Younger shoppers have a much stronger preference for shopping online, with millennials leading the way (70%).
Retailers stepping up
As retailers strive to match buyers’ increased expectations, more than a quarter of online businesses (29%) always have at least one deal going, up 34% YoY from 2019.
Over half (63%) retailers provide deals outside sales seasons, with two-fifths (39%) saying they offer sales during traditional sales periods.
“Having grown up with the Internet and emergence of online sales events, millennials will naturally gravitate to where they can quickly and easily find the best bang for their buck with the least hassle,” said Ms. Rix.
“So, it’s no surprise that the online sales are now going neck to neck with offline.
“Regardless of whether a consumer is shopping in-store or online, digital experiences are becoming the consumer expectation.
“Retailers can’t underestimate the importance of digital across all environments, especially when Australians are on their mobile phones researching competitor prices while physically shopping in-store.”
More than a third of younger shoppers (34% millennials and 33% Gen Z) admit to regretting a buy after making a sales-driven purchase.
“With so many sale events now, it is easy to get carried away. Still, it is important to plan and keep a cool head going in.”
“Sales are a great time to buy what you need or try something new, as long as you are spending within your means and love your new purchases,” Ms. Rix said.
She shared some quick pointers for a good shopping experience:
- Shop with a budget and plan your purchases – give yourself a budget before you embark on a shopping spree and consider the items you need or want.
- Make a list and do your best to stick with it. It’s not a bargain if you’re never going to use it.
- Do your research and price comparison – check that you are getting a good price for your purchase and use the internet to search for better deals.
- Make use of discount coupons – look for discount codes and coupons, which can help you save even more or take the sting out of hefty shipping costs.
- Stay safe while shopping – shop with reputable merchants and be cautious in sharing your payment information at checkout.