Two thirds of Australian shoppers are now spreading their spending across multiple retailers. Shopfully’s Brendan Straw says brands without a clear value offer risk losing them altogether.
What’s happening: New research from Shopfully’s annual State of Shopping report finds that 67% of Australian shoppers are now intentionally spreading their spending across multiple retailers to find the best value.
Why this matters: The NAB Consumer Sentiment Survey for Q1 2026 found 57% of Australians switched at least one provider in the past year in response to rising prices, with NAB noting consumers are shopping around and making deliberate decisions to stretch their budgets rather than simply cutting spending altogether.
There was a time when a good product and a familiar name was enough. Shoppers had their go-to stores, their trusted brands, and a rough mental list of where they bought what. That predictability made planning easier for small retailers and product businesses. It also made loyalty something you could reasonably count on.
That time appears to be over.
Shopfully’s State of Shopping report, released this week, surveyed Australian consumers and found that roughly two thirds, 67 per cent, are now intentionally spreading their spending across multiple retailers specifically to find better value. This isn’t browsing. It’s a deliberate strategy, and it’s being applied across categories that small businesses compete in directly.
The report found other cost-saving behaviours are equally widespread. Nearly half of respondents said they are cutting non-essential purchases. Around 44 per cent said they are prioritising products on promotion. And 35 per cent have switched to cheaper brands or private labels.
The confidence picture is not improving either. Six in ten Australians now believe their purchasing power will not get better this year. That figure was 54 per cent twelve months ago.
Annual inflation sat at 3.7 per cent in the twelve months to February 2026, according to the Australian Bureau of Statistics, with housing up 7.2 per cent and food and non-alcoholic beverages up 3.1 per cent over the same period. Against that backdrop, the Shopfully findings make sense. People are not being difficult. They are responding rationally to conditions that have not meaningfully eased.
“With consumer confidence low and only 4 per cent of shoppers planning to spend more this year, Aussies are becoming far more strategic with their spending and taking extra steps to secure the best possible value,” said Brendan Straw, Shopfully’s Country Manager for Australia. “For retailers, this means showing up with the right offer at the right moment. Brands that can cut through the noise and deliver clear value to shoppers will be best placed to win attention, drive sales and instil loyalty.”
The research habit nobody saw coming
One of the more significant findings in the report is how early in the process this value-hunting is happening. Nearly two thirds of shoppers say they always or often research products online before buying. More than half go directly to a brand or retailer’s website or app. A third are using platforms that compile promotions and deals across multiple retailers.
By the time a customer walks through the door or lands on a checkout page, they have often already compared you to at least two or three alternatives. The decision is largely made before you even know they are considering you.
This is compounded by a return to physical retail that might initially seem like good news. The Shopfully report found preference for in-store shopping has increased to 68 per cent, up from 41 per cent last year. In categories like food and beverages, 87 per cent of purchases still happen in a physical store. Health and personal care sits at 82 per cent. Home improvement at 74 per cent.
But as Straw notes, the path to that store is increasingly digital. ABS data released in March 2026 showed household retail spending rose 5 per cent year-on-year in January, though the Australian Retail Council noted consumers remain highly price-sensitive and are continuing to prioritise value as they manage ongoing cost-of-living pressures. Foot traffic is there. Margin pressure is too.
Promotions aren’t optional anymore
The report is unambiguous on promotions. Nearly half of Australians say deals and promotions strongly influence their purchasing decisions. Close to two in five are deliberately delaying purchases to wait for annual sales periods. That second figure matters because it signals something beyond opportunism. These shoppers are planning around promotional windows, which means if you are not visible during those windows, you are not part of the consideration set at all.
Interestingly, the Shopfully data also shows that when advertising is relevant and promotion-led, Australians are increasingly receptive to it. Over a third now say they find ads useful for discovering promotions they would not otherwise have found, and around a quarter said it helps them plan their shopping. For small businesses that have written off advertising as something only bigger players can afford to do effectively, that is a finding worth sitting with.
The vast majority of Australian shoppers, 87 per cent, have not yet used AI tools to support their purchasing decisions. But among those who have, the use cases are pointed directly at value. Seventy-one per cent said AI helped them compare prices across retailers. Forty-three per cent used it to track price drops on items they wanted.
Shoppers aged 25 to 34 are the most likely to be doing this. That cohort will make up an increasingly large share of consumer spending over the next decade. The behaviour is early but the direction is clear. Tools that help people find the cheapest option faster are gaining traction, and small businesses that rely on customers not knowing better are operating on borrowed time.
“Today’s shoppers are savvier than ever and far less likely to stick with a single retailer or brand if their expectations around value aren’t being met,” said Straw. “For retailers, that means being visible at every stage of the shopping journey. Brands that can deliver timely promotions and relevant messaging across both digital and physical touchpoints will be best placed to capture attention, drive footfall and convert value-focused shoppers.”
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