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Shoppers expect discounts: CBA report

AAP logoAAP 10/11/2016

Shoppers typically buy clothing, shoes, homewares and hardware on impulse when there is at least a 25 per cent discount, and a growing number are unwilling to ever pay full price.

The Commonwealth Bank's third Retail Insights Report, based on surveys of 500 retail business managers and about 1,000 shoppers, has found that 77 per cent of shoppers make impulse purchases.

The usual trigger is a discount of at least a 25 per cent. And, 46 per cent said they are unwilling to pay full price - ever.

Meanwhile, retailers often start discounting at 20 per cent.

The majority of shoppers said price was the major single factor behind their purchases, and while most considered quality important, it wasn't the over-riding concern, and a discount made the purchase easy.

"Frequent sales and promotions appear to have raised the expectation among many shoppers that paying full price is seldom necessary," the report CBA said.

"So, while many consumers are willing to pay for quality, they also believe it's easy to buy at a discount, with a significant minority now unwilling to pay full price on any occasion."

Shoppers who consider themselves brand loyalists, however, said those products lose their allure when they are often discounted.

"Pricing, clearly, plays an important role in both driving sales and prompting purchase. But, it is important that retailers remember shopper behaviour can vary widely and consider the type of consumers they are seeking to attract," Commonwealth Bank's national manager of retail Jerry Macey said.

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