66% of Aussie shoppers are considering making a purchase in the 2018 EOFY sales; and appliances, furniture & homewares tipped to be the most popular categories
Salmat research finds that 20% plan their EOFY shopping 1-6 days in advance and most go both online and in store to garner information on the best deals
Sydney, Australia – 7 June 2018: New research released today by marketing services company, Salmat, revealed two thirds of Australian consumers are considering making a purchase during the EOFY sales this year, if the price is right. Salmat commissioned the Australian Consumer, Retail and Services (ACRS) research unit to investigate how shoppers prepare for, and purchase, during the end of financial year (EOFY) sales. The findings suggests that having an online presence is vital and retailers should ramp up their campaigns a week in advance to ensure success.
Majority of shoppers plan for the EOFY sales
According to the study, a fifth (20%) of respondents said they plan to purchase something in the EOFY sales this year. Just under half (46%) of shoppers indicate they may purchase something, while a small amount (13%) are undecided.
Respondents were asked when they like to start their shopping for EOFY sales, with 22% reporting as soon as the sales are announced, 32% said sometime in the month of June, and 14% said in the last week of June for the final markdowns. In terms of how much time respondents give themselves to plan their EOFY purchases, a fifth said they plan to shop the sales 1-6 days in advance, however, most shoppers admit that their shopping is spontaneous with over a third reporting that they don’t plan their EOFY shopping.
|When do you like to plan your EOFY shopping?
|I don't plan my EOFY shopping
|On the day
|1 to 6 days in advance
|1 to 2 weeks in advance
|2 to 4 weeks in advance
|Over a month in advance
Salmat’s Retail Business Consultant, Dan Salter, said: “We’re seeing that consumers are consistently planning ahead in their hunt for the best deals. This planning process pays dividends for savvy shoppers and means they are more likely to bag a bargain and get real value for money out of the EOFY sales. Furthermore, with the ease and convenience of the internet, customers are browsing the sales online from the privacy of their own home or during their busy workday to quickly identify products and categories they want to shop and find the best prices to then venture out to the stores or purchase online.”
Homewares and appliances set to be the most popular choices
From the research, it’s expected there will be a strong focus on purchasing items for the home, with home appliances (37%) and furniture/homewares (35%) being the most popular categories. At the other end of the spectrum, shoppers are least interested in purchasing automotive items (9%) and holidays (11%) in the EOFY sales.
|Which of the following products are you planning to buy in the EOFY sales?
|Consumer electronics (e.g. computers, tablets, mobile phones)
|Personal care and health
|Bath, body and fragrance
|Sporting goods, camping, outdoors
When considering making a purchase in the sales period, findings were consistent for both 2017 and 2018, and the overwhelming majority of shoppers (86%) indicated price is the most important factor when shopping, followed by quality (69%), convenience (62%), product availability (58%) and promotions (50%). Interestingly, when looking at shopper’s income levels, the most deal conscious are surprisingly those with a combined household income of $100k to $149k. Those in the lowest income bracket, earning less than $39,999 were the least inclined of all groups to base their purchase decisions around getting a deal.
Salter continued: “Big-ticket items such as furniture and home appliances are expected to be the most popular in this year’s busy EOFY sales period. More frequently, we’re seeing that shoppers are voting with their pockets and demanding strong discounts come sales time before they spend up big. Demand for low prices are bolstered by the current price wars amongst retailers, spurred on by the arrival of online marketplaces like Amazon, meaning that shoppers really are spoilt for choice,” he said.
Retailers need an online and offline presence
According to the research, half of shoppers indicated that the physical store is an influential touchpoint when deciding on which brand to purchase. Other touchpoints that are influential to shoppers include promotions (36%), retailer websites (29%) and web searches (29%) demonstrating the importance of having a strong online search presence.
The growing investment by local and international retailers in e-commerce channels, also means there is now more choice for shoppers during the EOFY sale period. With more choice comes more need to research, and in terms of where EOFY shoppers gather information on sales items, the ACRS research uncovered that an equal number of respondents (35%) prefer to browse and buy in-store, or browse online and buy in-store. The most popular ways shoppers research and plan EOFY shopping is via internet search (42%), online stores (41%) and in-store (36%), followed closely by online catalogues (31%) and letterbox catalogues (30%).
“Whether shoppers choose to use the ‘conventional’ bricks-and-mortar method or the virtual one, as a customer, due vigilance is still the best way to be savvy while spending your hard earned money. EOFY shoppers should keep their eyes out for in-store and online deals in the lead up to the sales, for example, in-store and letterbox catalogues offer highly competitive pricing on bigger ticket items, and with most of us now owning a digital device, it's never been easier for shoppers to compare prices online via websites and online aggregators like Lasoo,” Salter said.
Dan Salter’s top tips for smart shopping in the EOFY sales:
Sign up to your favourite brand’s newsletters and look out for EOFY codes for further discounts.
Follow your favourite brands on social media including Instagram, and Facebook
Check out trending products to see the best deals other shoppers have found and look at reviews to help make your purchase decision.
Do your research and always check out the front and back page of catalogues for the best deals.
Act quickly before retailers sell out and don’t be afraid to ask shop assistants for help as they can help you find it and purchase online
Retailers target those without a plan so to keep an eye on your purse strings, go in with a plan and do your research in advance.
Use online tools like Lasoo to make your EOFY sales planning easier.
For further information, please contact:
Account Executive, WE Buchan
M: +61 414 137 686
Senior Manager - Corporate Communications
M: +61 423 603 105
Methodology for consumer research
The figures in this release are based on the ACRS Omnibus Tracker from February 2018. The ACRS Omnibus Tracker is a quarterly tracking study of consumers’ multichannel preferences and behavior, based on a survey of 500 Australian shoppers.
Salmat is a leading Australian marketing services business. We partner with our clients to help them with the constant pressure of acquiring and servicing their customers, week-in, week-out. With media, digital and contact capabilities, we have the right solutions for our clients, enabling them to Reach, Convert and Serve more customers.
Founded in 1979, Salmat has evolved from a small letterbox distribution business to an ASX-listed company. With a talented team across four countries we work with some of Australia’s most recognised and trusted brands to manage billions of customer interactions every year.
Reach: We offer the broadest reach media (online & offline), with the ability to target individuals and up to 17 million people. Convert: We deliver conversion across multiple channels, creating more opportunities for our client’s customers to buy Serve: We make every one of our client’s interaction count online and offline.