Frugal Shopping Helps Australians Save $s Or The New Frugal Shopper Is Here To Stay

Frugal Shopping Helps Australians Save $'s Or The New Frugal Shopper is Here to Stay

Australia is in the midst of a global shopping trolley revolution, as consumers stop frivolous shopping trips. Instead, the Australian shopper is becoming more frugal in an attempt to save on their weekly grocery costs, according to new Galaxy research commissioned by Woolworths.

The research*1 finds that as a result of the GFC, a new breed of shopper has emerged around the globe. In a new age of frugalism, today's shopper demands value, is better informed and savvy enough to seek out a bargain. Furthermore in Australia, as in other first world countries, it looks as though this new frugal shopper is here to stay even as we come out of the down turn. In fact 93% of shoppers questioned in the survey report that they have changed the way they shop and don't intend to go back to their old ways anytime soon.

This new research found that in this new era of frugalism, shoppers expect value for money, but not at the expense of quality. Many shoppers now go to the supermarket with a shopping list and will stick to it as a way of keeping a lid on their grocery bill. Like the Silent Generation before, shopping for specials now features heavily and switching to supermarket brands such as Homebrand is also common practice. A key finding in the survey is that as many as four million shoppers are now buying more supermarket own brands than they were 12 months ago.

Helen Bakewell, Managing Director of retail research firm Directional Insights, adds: "The new era of frugalism is certainly upon us. Consumers are demanding more for their dollar and are happy to modify their spending habits of old when in the supermarket. Many are resourcefully looking to substitute a branded item for a generic supermarket product, but not at the expense of quality.

"And, it doesn't look as though this shopping habit is going to abate anytime soon. For the first time we have Generation Y talking of shopping more cautiously, even using the term 'saving' when questioned in research. Even the more wary Generation X is being more watchful on the products they purchase. It's time that retailers sat up and took notice."

James Aylen, General Manager of Grocery at Woolworths says: "The retail landscape is changing for good. The customer is king*2 and demands quality products at affordable prices. Our Quality Assurance team has worked tirelessly for two years to improve our Homebrand range so that many of our products can be benchmarked as offering equivalent quality to many of the best brands. We've put our customer first and clearly demonstrated that Homebrand products offer value for money and quality. Today's more frugal and knowledgeable shopper now has more information to help them choose what products they want."

Woolworths has observed, listened and learnt, and as of Monday 9th November, will be launching a new point of sale ticketing campaign across all of its stores nationwide that directly compares some of the country's favourite Homebrand private label products with their brand equivalents. The ticketing comparison will be based on standard shelf price and other criterion including country of origin and ingredients used.

"Our customers tell us they want real value-add alternatives when it comes to grocery shopping based on equivalent quality and price. By launching this ticketing campaign, Woolworths is better informing our customers of the facts and allowing them to make up their own minds when it comes to value and choice," said Mr Aylen.

For further information on the new ticketing campaign and cost comparisons, visit your nearest Woolworths store.

Notes to editors:
*Woolworths General Manager, Grocery James Aylen, is available for comment and interview on request
*For logos and images please contact Rebekka Thompson-Jones at Wilkinson PR

Media contact:
Rebekka Thompson-Jones
Wilkinson PR
T: 02 8001 8888
M: 0401 090 034

Clare Buchanan,
Woolworths
T: 02 8885 1032
M: 0404 829 033

*1 Galaxy, Hearts and Minds Shopping Study, commissioned by Woolworths, October 2009

*2 The Supermarket Guru, Phil Lempert, http://www.supermarketguru.com/index.cfm/go/sg.about.

SOURCE: Woolworths Limited