Media Release:

Retail Rip Off Tactics:
How Bricks and Mortar Stores Make You Spend More

Australian retailers are using clever tricks to encourage shoppers to spend more than necessary. Three out of four Australians say they regularly experience shopping 'tricks' designed to entice them into spending, according to research released today by DealsDirect.com.au, Australia's leading online department store.

The study revealed that one in three shoppers are regularly promised extra discounts, freebies or special deals by shop assistants pushing for an on the spot sale. Similarly, 37% of shoppers say stores frequently place items with impulse appeal near the cash register to encourage additional purchases.

According to Aussie shoppers, the five most common retail tricks are:

1. Shop assistants promising extra discounts, freebies or special deals if you purchase the item right away
2. Items with impulse appeal are placed near cash registers to encourage additional purchases
3. Items appealing to kids are placed near cash registers
4. Clever lighting to make items look more impressive than they actually are
5. Shop assistant pressure

Paul Greenberg, Managing Director of DealsDirect.com.au says that being able to spot retailers' tricks is only half the battle. "It's no secret that stores use all sorts of tricks and techniques to encourage additional spending and, as our research reflects, most shoppers are aware of them. The difficulty is resisting them!".

"As a bargain hunter, I find it hard to go past the offer of a freebie or added discount. And as a parent, I know how hard it can be to say no to my child when they beg for a chocolate bar or toy at the register!".

According to the research, stores also target children, banking on pester power to drive sales. Nearly half (46%) of the parents surveyed said they are frequently faced with appealing kids items displayed near cash registers.

Almost one in four parents admit they regularly give into their kids when they ask for something whilst shopping. In fact, more than two thirds of parents say they typically blow their budget when shopping with their children.

Working mother-of-three, Maree McLean from Sydney says, "Shopping on DealsDirect.com.au means I can stick to my budget and not get sucked into other shopping tricks. DealsDirect.com.au offer fantastic products and great bargains, delivered straight to my door - how good is that?!"

Retailers do not use the same techniques to target all customers. For example:

• Shop assistants are most likely to target 25-35, trying to get them to spend money with discounts, freebies and special deals and are least likely to target shoppers over 50 yrs old (41% vs 34%)
• Stores are more likely to target women than men (42% vs 32%) by placing items with impulse appeal near the cash register to encourage additional purchases
• Cashed-up Gen Ys are most often on the receiving end of pushy shop assistants tyring to get them to spend money. 30% of the 18-24 year olds surveyed said they face shop assistant pressure on a regular basis, compared to the national average of 19%
• Similarly, retailers are most likely to encourage Gen Y to spend by hiring trendy and attractive shop assistants to showcase the items for sale, with 20% of 18-24s experiencing this versus the national average of 13%
• Those who completed higher education were universally more aware of the shopping tricks retailers employ than those who hadn't received a tertiary education (78% vs 69%).
• City stores are more likely to pressure customers than those in regional areas with 21% of city dwellers saying they experience this compared to 16%.

Interestingly, the research showed that people who shop online frequently (every 2-3 weeks or more) are more conscious of shopping tricks than those who don't shop online at all.

Greenberg says this is most likely because after an unfettered-shopping experience in an online environment, it's much easier to identify the tricks used to make you spend more in a traditional retail environment.

"Shopping online puts you back in the drivers seat and makes it easier to stick to your budget. There are no pushy sales assistants and you can shop around for the best price with the click of a mouse. Best of all you can shop at a time that that suits you - when the kids are otherwise occupied and you're not in a rush," explains Greenberg.

Paul Milani from Victoria says he used to regularly blow his shopping budget by succumbing to flattering shop assistant recommendations but now avoids retailer tricks by shopping online, "There is no pressure to buy more, no-one is trying to up-sell to me. I can browse great items in peace and I can stick to my budget - all from home!"

"I can't go past DealsDirect.com.au - the prices are great, the selection of product is incredible to choose from and I receive my purchases a couple of days later! It makes shopping easy, fast and stress-free!"

Greenberg says customers love the bargains they get on DealsDirect.com.au as well as the 24/7 'shop from anywhere' convenience. "Not having to fit our merchandise into a physical shop or pay the overheads associated with bricks and mortar stores, means we are able to offer more than 7,500 items across 24 categories - including major brands like Kodak, Sheridan and Fisher Price - at heavily discounted prices.

"DealsDirect.com.au is 100% Australian owned and operated so every dollar spent helps our local economy. With next day dispatch on 95% of items, all day, everyday fantastic customer support, the fact you pay less does not mean customer service or satisfaction are ever compromised,"

Greenberg emphasises how safe it is to shop online if you pay safely. "The security of our customers is of the utmost important to us. We offer customers a wide variety of payment methods, including PayPal. We recommend PayPal because it keeps your personal and financial details private so you can rest assured your information is secure."

State specific results:

• Shops in WA employ the most shopping tricks. They are the most likely to use clever lighting trendy and attractive shop assistants using the items to encourage shoppers to buy them.
• Shops in NSW are the most likely to use shop assistants promising special deals, freebies and discounts to close a sale.
• Victorian and WA shops are the most likely to place items appealing to kids near cash registers
• South Australian shop assistants are the most likely to pressure shoppers to buy things.

Courtesy of DealsDirect.com.au

Mum Zone Release Date: 20th October 2009

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