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Impulse Buying Major Cause Budget Blowout

Strictly embargoed until 12 November 2006

Impulse Buying Major Cause Of Christmas Budget Blowout

Impulse supermarket buying is a major cause of New Zealanders Christmas budget blowouts, according to a nationwide survey released today, with females aged 40-49 most at risk.

More than half of respondents (56%) said they go over their budget as a result of impulse supermarket purchases, with 27% blowing the budget by between $50 and $100. Based on the sample size, this represents an impulse overspend at supermarkets of $54m in New Zealand every year per head of population.

Special offers, end of aisle displays and buy one get one free deals were the most likely to cause impulse buying decisions, according to the online survey. Conducted by TNS Research for Chrisco, the hamper company, the survey collected responses from 1001 New Zealanders, 15 years or older.

Chrisco general manager, Julia Dol, said the survey clearly shows the hidden cost of supermarket shopping, a consideration of particular importance with Christmas just around the corner.

“It’s hard to pass by a special offer or resist the lure of the confectionary or the magazines at the checkout. But it’s these moments of weakness that cause major budget blowouts and significant financial hardship for many New Zealand families over the Christmas period,” she said.

Other key findings from respondents:

• 77% bought more than they intended of a particular item because it was on special
• 62% purchased impulse items from the checkout
• 60% purchased a buy one get one free deal
• 45% go over budget by up to $50
• 43% purchase something just to earn bonus points
• 10% said they overspend by more than $100.

Impulse shopping wasn’t just limited to grocery items, with 36% of respondents saying they seriously consider purchasing items such as small appliances, outdoor furniture and portable DVD players.

“We recognise that budgeting and shopping for Christmas is one of the biggest causes of stress for New Zealand families, so Chrisco has developed a product that offers an alternative to the traditional supermarkets. Our hamper and savings club allows our customers to save in advance for Christmas or for other special times of the year.”

Dol said Chrisco offers a variety of hampers to suit every need from packaged goods designed specifically for a family feast or fresh meats just right for a Christmas BBQ.

“Not only does Chrisco help avoid these impulse shopping temptations, it also avoids the stresses caused by traffic and supermarket congestion, creating a stress free Christmas within budget,” said Dol.

ends

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