Shopfully’s Brendan Straw on what it means for businesses trying to turn a one-off discount into a lasting customer relationship.
Australian shoppers have always loved a good deal. But in the current economic climate, deal hunting has evolved from a bargain-seeking behaviour into a sophisticated retail strategy.
We are now operating in what could be called “The Deal Hunter Economy” – a time in retail where shoppers aren’t necessarily spending less but are spending far more carefully. They are comparing prices, timing purchases around major sales events, switching brands when the value equation no longer stacks up, and using digital tools to make sure every dollar works harder.
For retailers, this means promotions can no longer sit at the edge of the marketing plan. Discounts are no longer just a short-term lever to clear stock or drive a seasonal spike; they have become central to how consumers decide whether, when and where to spend. The retailers that win will be those that use promotions as the beginning of a customer relationship, not the end of one.
Still spending, but the path to purchase has changed
As we move into a new financial year and household budgets are still under pressure, Australians are becoming more deliberate about how they spend.
Consumers are still buying across discretionary categories, with more than a third not prepared to cut out clothing shopping (35%) and more than a quarter saying the same for beauty and personal care (27%). However, maintaining these shopping habits now requires a more strategic approach, with shoppers becoming increasingly selective about when, where and why they buy.
This is where major retail moments are becoming more important. For many households, sales events are no longer simply opportunities to browse for a bargain; they are becoming planned purchasing windows that help shoppers stretch their budgets and justify spending.
End-of-financial-year (EOFY) sales are a prime example of this behaviour. YouGov research, commissioned by Shopfully, found 89% of Australian consumers were likely to participate in EOFY sales. The same research found 30% of respondents only shop during promotions and sale periods, while 56% had strategically delayed some or all big-ticket purchases until annual sales moments.
That tells us consumers are not simply cutting back. They are delaying, planning, and concentrating spending in moments when they feel they can extract the most value.
For retailers, this creates both opportunity and risk. Annual sales moments can still drive strong engagement, foot traffic and conversion, but it also reinforces a more challenging reality: shoppers are becoming trained to wait.
Brand loyalty is becoming more fragile
Another clear sign of the “Deal Hunter Economy” is the rise of private label and value-led ranges. As shoppers become more focused on price and perceived value, many are becoming more willing to look beyond the brands they have traditionally bought.
In this environment, brand loyalty can no longer be taken for granted. According to another YouGov study, only 17% of Australian consumers consistently stick to specific brands. While affordability is a key purchasing factor for nearly 7 in 10 Aussie shoppers, 63% would choose a more affordable private-label brand when they perceive quality to be comparable.
This signals a major shift in the competitive landscape. Private labels are no longer simply a budget fallback for shoppers under pressure, but an intentional choice. For established brands, the risk is not just that shoppers switch once during a promotion or a tighter budgeting period. But once consumers trial a cheaper alternative and find it meets their expectations, they may have fewer reasons to switch back.
Brands need to justify their price premium at the moment of decision and establish why they are worth choosing. That means clearly communicating why they are worth choosing, whether through quality, durability, convenience, service, sustainability, pack-size value, multibuy offers or loyalty benefits.
Turning the discount cycle into a repeat experience
The biggest challenge for retailers is not whether promotions work. They do. The challenge is making sure promotions do more than drive a short-term sales spike.
In the “Deal Hunter Economy”, the real opportunity is turning a value-conscious shopper into a repeat customer. That starts with recognising that a discount may win the first purchase, but it will not guarantee the second. Once a shopper is brought into a store or onto a retailer’s platform through an offer, the experience that follows becomes critical. Product availability, convenience, service, clear pricing and relevant follow-up offers all influence whether that customer comes back when the promotion ends.
Retailers also need to think beyond blanket discounts. Deal hunters are not all motivated by the same offer. Some are looking for the lowest price, while others are seeking better overall value through bundles, loyalty rewards, convenience, quality or a reason to switch from their usual brand. The more tailored the value proposition, the more likely retailers are to build a relationship rather than simply capture a one-off transaction.
This is where promotional strategy and brand-building need to work together. Retailers should use major sales moments like EOFY to bring shoppers into the market but then continue engaging them outside promotional windows with clear reasons to return. That could include personalised offers based on recent shopping behaviour, reminders about relevant categories, local store promotions, or messaging that reinforces quality, convenience, sustainability or service.
A more sophisticated approach to measurement is also essential. Clicks alone do not prove retail impact. Retailers need to understand whether promotional campaigns are driving store visits, increasing basket size, encouraging switching, lifting sell-out or prompting repeat engagement. Closing the loop between promotional exposure and commercial outcomes helps retailers see whether discount activity is creating lasting value, not just short-term noise.
The new rules of value-conscious retail
The “Deal Hunter Economy” does not mean Australians have stopped spending. It means they are spending with more scrutiny, more planning and higher expectations of value.
Sales may bring deal hunters in, but the retailers that succeed beyond the sales period will be those that use promotions as the beginning of a customer relationship. Discounts can create the first moment of consideration, but repeat loyalty will come from retailers that continue to prove their relevance through clear value, strong service, product quality, convenience and timely offers.
Premium products also still have a role to play, even in a price-sensitive market, but they need stronger storytelling. Shoppers may be cautious, but they will still pay more when the value is clear. For instance, Shopfully found that more than half of Australians would be willing to pay more for sustainable or ethically made products, showing there is still room for premiumisation when the benefit is meaningful.
In this market, retailers need to prove value beyond cost. The winners will be those with the clearest value proposition – one that is earned, communicated and proven at every stage of the customer journey.
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