Spending surges on RBA rate cut hopes
The Australia Post eCommerce report shows a massive 7.9 million Australians are now shopping online, with every category tracked seeing a lift in spending.
This was led by $4.2bn in online marketplaces, $3.9bn in food and liquor, and $2.7bn spent in on fashion.
Australia Post puts the surge in online shopping down to a mix of bargain hunting Aussies targeting the end of financial year, easing cost of living pressures and households expecting further interest rate relief. Australians are spending $19.2bn shopping online. NewsWire / Nicholas Eagar Credit: NewsWire
One of those taking advantage of this sales period was Central Coast mortgage holder and mum Justine Ribgy who said June was always an expensive period for her household.
'We took advantage of those online retail offers more so around household appliances that needed replacing,' she said.
'My husband and I are also in the year being 40 so we had some big gifts there and our children's birthday's fall in June and July, so when we add all that up the (end of financial year sales) is a big savings.' Australian consumers spent billions during the end of financial year sales Credit: Supplied
The increase in customer spending came during a period when the Reserve Bank of Australia initially held the cash rate in April, before slashing 25 basis points in May.
Households had also expected further relief in July, with a cut widely forecasted at the start of the new financial year. Instead, the central bank held the official cash rate at 3.85 per cent.
Ms Ribgy said even though the RBA held the official cash rate in July, it was still a little win for households
'We have had to budget month to month with the cost of living over the last couple of years so a rate cut frees up our discretionary spending. We can be a little less frugal,' she told NewsWire.
'To be honest, even with the hold … it's still positive. It gives us that confidence to loosen the purse strings a little bit.' The increase in customer spending came after the RBA cut interest rates in May. Christian Gilles / NewsWire Credit: News Corp Australia
Despite the increasing overall spend, Australia Post research showed Australians are spending less per transaction with the basket size falling by 1.6 per cent over the previous year.
Instead Aussies are buying more often and are turning to marketplaces and department stores to get the cheapest price product.
Australian Post general manager customer success Chelsea O'Reilly said Australians were taking their time when it comes to online shopping in order to get the best deal possible.
'Consumers are becoming a whole lot more savvy and strategic in terms of their shopping and we've seen that with an increase in the amount of time they are spending on online marketplaces and department stores,' Ms O'Reilly said.
'They are going there so they can compare brands, pricing and maximise their savings.'
Aussies proved their love for a quick bargain, spurring a significant 28 per cent spike in online department store spending during the quarter.
Younger Aussies remain the most likely to buy online with Millennials spending $6.9bn online, followed by Gen X at $5.3bn and Gen Z who spent $3.4bn.
Ms Reilly said with more Australians choosing to spend their money online, the postal service was investing heavily to keep up with customer demand.
'We are heavily investing in delivering choice and convenience for our customers,' she said.
'This includes same day, next day, any day offerings as well as parcel lockers which we are looking to expand over the next five years.'
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