Wednesday, June 21st, 2017 - MCH Consulting

Retail expert advises that specials can significantly cut grocery bills when used correctly, saving the average household $2,080 per year

 

Latest survey findings have shown that while grocery shoppers are more savvy in the supermarket – with 95% of respondents saying they will look out for and make alternative purchases on special offers – overspending is still rife due to lack of planning when it comes to supermarket shopping.

 

The survey conducted by supermarket deals comparison website mySavvy Shopper (www.mysavvyshopper.com.au) found that of the 1,000 people questioned, 95% will look out for and make purchases advertised as special offers, with the next top ways to save money at the checkout being listed as:

  • Buying products on special offer (73%)
  • Working out the best deal based on unit price (ie: cost per 100g) (61%)
  • Buying products marked down for quick sale (59%)
  • Buying home brand or less popular branded products (58%)
  • Selecting a specific supermarket based on price (such as Costco or Aldi) (44%)
  • Bulk buying in large quantities (43%)

Managing Director of mySavvy Shopper David Myles says that shoppers are on the right track in keeping an eye on special offers, and the mySavvy Shopper’s consumer spending algorithm* that using special offers to the consumer’s advantage should save a minimum of $2,080 off their annual grocery bill: “When used properly, we have calculated that grocery buyers should be able to save a minimum of $2,080 by keeping an eye on specials and stocking up on the right kinds of product when they’re good value, whether in your usual supermarket or at another competitor. The key is to be flexible with where you shop, be prepared to wait for special offers on products you need, and stock up when you need to.”

 

Mr Myles also warns of the common pitfalls in shopping for special offers: “It’s great to see that people are smart enough to take advantage of the special offers but consumers shouldn’t be buying specials just because they’re heavily reduced, when you wouldn’t ordinarily buy them or they’re in addition to the shopping list, rather than instead of an existing product you’d buy.

“For instance, buying certain products such as confectionery may just mean the household will consume it quicker, so it’s not going to be good for your budget in the long run. Many people also fall into the trap of thinking they’re making a great saving by buying products may have use/sell by dates that they’re not aware of such as biscuits and chips.

 

He advises: “Instead, invest in products on special offer that you can’t consume any faster than you need to, such as tinned tomatoes, bread, froszen food, detergents and toothpaste. The best way to keep your budget in check is to only buy on special what you intend to buy anyway – or as an alternative, switch to a brand that is on special that week, which is interchangeable with your usual brand – if you want to better manage your grocery budget.” he advises. 

 

Planning beforehand also helps grocery shoppers to keep costs down and away from temptations laid out in the store: “54% of those surveyed are still not menu planning, 49% aren’t setting a budget and 28% aren’t using shopping lists, which makes it much easier to fall into the temptation of buying products they don’t need, that will make your bills escalate week in and week out.”

--

Fast facts (for full survey breakdown by state/territory, see below)

  • 60% of Aussies buy at least one item they didn’t intend to purchase on their last shop and the average person surveyed buys five products they don’t intend to buy on each shopping trip. These five impulse purchases equate to an estimated $23.70 added to their grocery bill per week, over $1,000 per year.

NSW are worse offenders with average of over six items, while ACT is best at only half of that at 3 items per shop

  • Queenslanders and Tasmanians are smartest when it comes to buying own brand products and products in bulk to save money.

Northern Territorians are smartest when it comes to looking at unit price to figure out the best value based on product size

  • Northern Territorians are the worst at falling for impulse purchases because they’re hungry or thirsty whilst shopping (29%) and NSW residents are the worst falling into the trap of seeing a new product/flavour they’d like to try (18%)

Ends

 

Survey conducted by Benchmarking For Performance on behalf of mySavvy Shopper, April 2017.

*For further information about the algorithm please contact Mary Cassidy, MCH Consulting

Key survey results by State/Territory

How much on average do you spend per week on groceries?

         
 

NSW

VIC

QLD

SA

WA

ACT

NT

TAS

$100 or less

35% ???????

34% ???????

31% ???????

41% ???????

42% ???????

52% ???????

50% ???????

37% ???????

$101 - $150

22% ???????

31% ???????

30% ???????

31% ???????

20% ???????

24% ???????

0% ???????

21% ???????

$151 - $200

21% ???????

18% ???????

24% ???????

17% ???????

17% ???????

19% ???????

14% ???????

26% ???????

Nett $200+

22% ???????

18% ???????

16% ???????

11% ???????

20% ???????

5% ???????

36% ???????

16% ???????

$201 - $250

12% ???????

8% ???????

5% ???????

4% ???????

15% ???????

5% ???????

14% ???????

11% ???????

$251 - $300

5% ???????

4% ???????

7% ???????

5% ???????

4% ???????

0% ???????

7% ???????

5% ???????

Over $300

4% ???????

5% ???????

4% ???????

2% ???????

2% ???????

0% ???????

14% ???????

0% ???????

Average

$163.16

$158.41

$163.45

$145.48

$150.51

$126.43

$178.93

$146.26

                 

Thinking about your grocery budget, do you tend to...?

         
 

NSW

VIC

QLD

SA

WA

ACT

NT

TAS

Go over budget

33% ???????

31% ???????

34% ???????

40% ???????

24% ???????

25% ???????

44% ???????

30% ???????

Stick to your budget

66% ???????

65% ???????

60% ???????

53% ???????

67% ???????

63% ???????

56% ???????

70% ???????

Come in under budget

1% ???????

4% ???????

6% ???????

6% ???????

9% ???????

13% ???????

0% ???????

0% ???????

                 
                 

Do you buy products when shopping based on shopping deals or specials you see when in the store?

 
 

NSW

VIC

QLD

SA

WA

ACT

NT

TAS

Yes

95% ???????

96% ???????

93% ???????

94% ???????

94% ???????

90% ???????

71%

89% ???????

No – hardly ever or never

5% ???????

4% ???????

7% ???????

6% ???????

6% ???????

10% ???????

29%

11% ???????

                 

Thinking about the last time you did a major shop at the supermarket did you buy and products that you didn’t intend to buy before entering the store?

 

NSW

VIC

QLD

SA

WA

ACT

NT

TAS

Yes

60% ???????

59% ???????

66% ???????

60% ???????

55% ???????

57% ???????

64% ???????

47% ???????

No

40% ???????

41% ???????

34% ???????

40% ???????

45% ???????

43% ???????

36% ???????

53% ???????

                 

Approximately how many products did you buy that you didn’t intend to buy before entering the store?

 

NSW

VIC

QLD

SA

WA

ACT

NT

TAS

1 or 2

32% ???????

26% ???????

29% ???????

30% ???????

26% ???????

42% ???????

22% ???????

22% ???????

3 or 4

26% ???????

35% ???????

32% ???????

24% ???????

28% ???????

33% ???????

33% ???????

11% ???????

5 to 9

25% ???????

28% ???????

30% ???????

34% ???????

26% ???????

25% ???????

22% ???????

56% ???????

10 or more

18% ???????

11% ???????

10% ???????

12% ???????

19% ???????

0% ???????

22% ???????

11% ???????

                 

And what would be the approximate dollar value would you estimate these extra items would total?

 
 

NSW

VIC

QLD

SA

WA

ACT

NT

TAS

Under $10

17% ???????

14% ???????

15% ???????

20% ???????

16% ???????

8% ???????

11% ???????

22% ???????

$10 < $20

30% ???????

27% ???????

29% ???????

24% ???????

23% ???????

50% ???????

22% ???????

22% ???????

$20 < $30

25% ???????

31% ???????

29% ???????

26% ???????

30% ???????

42% ???????

22% ???????

33% ???????

Over $30

29% ???????

28% ???????

27% ???????

30% ???????

32% ???????

0% ???????

44% ???????

22% ???????

Average

 $24.78

 $22.16

 $23.45

 $22.16

 $26.37

 $15.00

 $39.00

 $20.78

                 

Why did you buy those products?

             
 

NSW

VIC

QLD

SA

WA

ACT

NT

TAS

Marked down for clearance/quick sale

0% ???????

0% ???????

1% ???????

0% ???????

0% ???????

0% ???????

0% ???????

0% ???????

Bought snacks or drinks because hungry/thirsty

20% ???????

14% ???????

24% ???????

18% ???????

9% ???????

10% ???????

29% ???????

16% ???????

Had a good special/good deal

47% ???????

44% ???????

45% ???????

46% ???????

43% ???????

48% ???????

43% ???????

32% ???????

Saw product & reminded me we needed it

31% ???????

30% ???????

36% ???????

31% ???????

30% ???????

33% ???????

36% ???????

21% ???????

New product I wanted to try

18% ???????

14% ???????

15% ???????

13% ???????

12% ???????

14% ???????

14% ???????

11% ???????

                 

Do you have a grocery budget?

               
 

NSW

VIC

QLD

SA

WA

ACT

NT

TAS

Yes

52% ???????

46% ???????

55% ???????

57% ???????

52% ???????

38% ???????

64% ???????

53% ???????

No

48% ???????

54% ???????

45% ???????

43% ???????

48% ???????

62% ???????

36% ???????

47% ???????

                 

Do you use a shopping list?

               
 

NSW

VIC

QLD

SA

WA

ACT

NT

TAS

Yes

70% ???????

72% ???????

71% ???????

80% ???????

75% ???????

76% ???????

57% ???????

53% ???????

No

30% ???????

28% ???????

29% ???????

20% ???????

25% ???????

24% ???????

43% ???????

47% ???????

                 

Do you do any of the following to save money on your weekly shopping bill?

     
 

NSW

VIC

QLD

SA

WA

ACT

NT

TAS

Buy products that are on offer/have special deals

74% ???????

72% ???????

74% ???????

71% ???????

76% ???????

76% ???????

57% ???????

63% ???????

Look at unit price and work out best deal for the product

60% ???????

57% ???????

65% ???????

71% ???????

59% ???????

52% ???????

79% ???????

53% ???????

Buy products marked down for quick sale (close to 'sell by' / 'best before' date)

59% ???????

55% ???????

64% ???????

65% ???????

56% ???????

67% ???????

64% ???????

63% ???????

Buy homebrand/no frill brands instead of branded

55% ???????

56% ???????

67%

61% ???????

50% ???????

43% ???????

64% ???????

74% ???????

Go to a specific supermarket if there are really good deals available

39% ???????

47% ???????

45% ???????

54% ???????

46% ???????

38% ???????

57% ???????

21% ???????

Bulk buy in large quantities to save money

39% ???????

40% ???????

54%

40% ???????

42% ???????

43% ???????

29% ???????

37% ???????

Price check in store then go online to get a better deal

12% ???????

9% ???????

5% ???????

16% ???????

14% ???????

10% ???????

7% ???????

11% ???????

None of these

4% ???????

7% ???????

4% ???????

5% ???????

4% ???????

10% ???????

7% ???????

5% ???????

 

For more information and for comments from mySavvy Shopper retail expert David Myles, please contact:

Mary Cassidy

MCH Consulting

0414 652 442

[email protected] 

 

Notes to editor

 

About mySavvy Shopper www.mysavvyshopper.com.au

Each week the mySavvy Shopper team checks out all the supermarket specials and drops them onto the website to make it easier for consumers to compare and save. Rather than shoppers having to wait to drop into the store on Wednesday for the specials catalogue, the website is a one-stop shop for all savings and specials that consumers can take advantage of at their local Coles, IGA or Woolworths.

 

On the website shoppers can browse special offers by store and by chain, make their own shopping list to identify where to make savings on regular purchases and decide which supermarket deserves the consumer’s dollars.

 

The website was developed by a group of retail experts with decades of experience in supermarkets, FMCG, marketing and food promotion, and they want to share our knowledge to help shoppers make savvy shopping decisions.

--

 

Mary Cassidy

MCH Consulting

T:     +61 414 652 442

E:     [email protected]

W:   www.mchconsulting.com.au

 

 

Contact Profile

Mary Cassidy

M: 0414652442
W: www.mchconsulting.com.au

Keywords

shopping, groceries, retail, consumer, spending, finance, budget

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