Australian consumers prioritize discounts over brand loyalty

A new report by retail industry association Shop ANZ and consumer insights platform Vypr reveals that Australian consumers are increasingly driven by discounts but are demonstrating less brand loyalty. The findings show that 91 per cent of consumers have switched brands to secure a better offer, while 79 per cent have visited different retailers for promotions.

Data indicates that 81 per cent of respondents consider price a more significant factor in purchasing decisions than they did a year ago. Among shoppers aged 35 to 44, 42 per cent frequently switch brands due to promotions.

Industry experts suggest that while promotional activity is increasing pressure on retailers, long-term loyalty requires more than just short-term volume. Vypr’s chief revenue officer Sam Gilding noted that brands must avoid a cycle of recruiting shoppers only to lose them to the next available offer. Shop ANZ GM Carla Bridge added that successful brands are those that make their value proposition easily recognizable across various platforms, from social media to the physical shelf.