Catherine Harris, chairperson of Harris Farm Markets, believes people are purchasing more fruit and vegetables rather than eating out.

Are you putting off that consumer electronics purchase you need? You certainly wouldn’t be alone. The latest Westpac-Melbourne Institute survey of consumer confidence found that the proportion of households saying now is a good time to buy a major household item has plummeted to its lowest level in over 25 years.

It’s not surprising that this situation combined with the Federal Government’s fiscal stimulus is causing confusion amongst shoppers. 

Retail sales mixed
Yesterday, consumer electronics and furniture retailer Harvey Norman posted a 5.8% sales decrease for the 28 days ended October 19. This is just one example of decreasing retail sales. 

However, dominant supermarket chain Woolworths saw sales grow to 9.6% in the first quarter of this financial year and home entertainment retailer JB Hi-Fi reported a 61% increase in profit in FY08 to $65.1 million last week.

Cathy Harris, chairperson of Harris Farm Markets, told Sky News on Sunday that she believes there is trend toward people purchasing fruit and vegetables to cook at home, rather than eating out. “For example, last weekend we had mangoes on sale for $15 a box. We sold more mangoes on the weekend than we have ever sold in the whole year. I believe people are looking for value for money, now more than over.”    

People seem to be more reluctant to buy luxury items.

Samantha Lombardo, a university student and part time sales associate who sells specialty espresso machines in department stores, has found that fewer people are willing to buy. “Since August, my average sales have been dropping. People aren’t buying as regularly as they used to.

"I don’t think it has anything to do with the product. The stores are just empty,” she said.  

When asked whether she saw a difference this weekend due to the $10.4 billion economic package announced by Prime Minister Kevin Rudd, Lombardo said: “No, last Saturday was extremely quiet, one of the quietest days in a long time.

“I think people are more wary of purchasing things that are luxury or not a necessity,” she said.

Savvy spenders

Karen Moloney has become more considered in her purchase of a new notebook computer.

However, ConnectedWomen readers are a group of money-savvy women. In light of the global financial crisis, Australian women appear to have become more considerate in their purchases of consumer electronics.

This is true for Karen Moloney, who has been considering purchasing a new notebook computer for about six months. Moloney, who runs her own business, Get Me Learning Resources, wants to upgrade from her current PC for a new, faster laptop. 

When asked whether the global financial meltdown had impacted her decision to buy a notebook in the future, Moloney said: “There’s a little bit of that but I can’t afford not to buy it for my business.”

CE purchases reconsidered
Moloney said that she was continuing to spend a lot of money in marketing but had to re-assess purchases of consumer electronics. “I’m a bit more hesitant than I’d normally be and I’m waiting for the January sales. A few months ago I wouldn’t have thought twice about spending the money.”

Moloney said she will certainly buy a notebook but emphasised that she was putting further thought into her purchase. “We’re more considered and making sure that we’re getting the most for the dollar,” she said.

Maggie Lanzon has a similar position. A housewife with a growing family who lives in Sydney’s western suburbs, when asked about her buying intentions, she said, “I would wait until January to buy a new vacuum cleaner as I think prices will go up before Christmas.

Purchases prioritised

Shoppers are looking to get more for their money.

Lanzon said she has wanted a new vacuum cleaner for a long time but she wouldn’t buy it with credit, rather she will save up for it. “If we want something, we have to think ‘how important is it?’“If anything breaks down, we have to wait and save up for it. Especially now, coming into Christmas,” she said.

Like Moloney, Lanzon will not benefit from the Government’s economic package. The current financial situation has reinforced her sound spending habits. “We’re more careful with what we spend and what we spend it on. I’d love to have a camcorder but there are more important things for me to have,” she said.  

According to a survey by The Australian Centre for Retail Studies at Monash University, Australians are not overwhelmingly concerned about the current economic climate. It found the key issue for most people was a sense of uncertainty about what the next year will bring.

Shopping behaviour changes
The Foundry Customer Checkup Study found that customers are becoming less impulsive about spending, with shopping trips planned in advance after careful research to determine the best deals and justify major purchases.

"Customers have money…They are more discerning and will work harder on finding just the right product. But they are still willing to shop – they just need a valid and compelling reason to buy,” the study’s key findings stated.