West Aussies retreat from discretionary sectors as cost-of-living bites

21 May 2024

Bankwest’s latest Spend Trends analysis has highlighted the efforts of Western Australians in managing the current cost-of-living pressures, with further retreats on spending in April following the plummets of March.

Bankwest’s Spend Trends tracks WA customer credit and debit activity to identify insights in community responses to economic conditions, with April 2024 data showing retreating volumes year-on-year, while values climb.

The results come after the previous Spend Trends report, which analysed March spending, showed significant declines of about 30 per cent year-on-year in the number of customers spending and transaction volumes.

The number of unique customers spending in April fell 3.4 per cent and the volume of transactions declined three per cent year-on-year, while average transaction values grew (+7%), indicating people were paying more for less.

Essential spending sectors made up three of the Top 5 sectors for transaction volume growth year-on-year (Education [6%], Pharmacies [5%], and Utilities [5%]), while discretionary sectors accounted for all major declines.

The trends suggested Western Australians have significantly reduced their spending in discretionary sectors, as household budgets narrow their focus on the goods and services they need amidst cost pressures.

Highlighting the trend was the fact that only two of the 25 sectors analysed increased year-on-year in the number of customers transacting, and even those were minimal increases (Airlines [2%], and Education [1%]).

The trend was contrasted by increases across several sectors year-on-year in the average value of transactions, including Utilities (+9%), Education (+6%), and Pharmacies (+6%).

However, a silver lining was prices at the bowser and checkout starting to ease, or at least stabilise, with year-on-year transaction values at Service Stations and Food Stores/Warehouses both declining by two per cent.

The data also suggested the cost-of-living pressures were impacting all generations equally, with no discerning differences in spending behaviours between Millennials, Gen X, and Baby Boomers.

Bankwest General Manager Products and Digital Services Peter Bouhlas said: “Bankwest’s Spend Trends report gives us an important insight into how Western Australians are adapting to economic conditions.

"We can see from the April data that cost-of-living pressures continue to impact the community, and people are increasingly focusing spending on the essentials, while pulling back on sectors that are more wants than needs.

"The spending of Western Australians has been reining in for consecutive months now and the stability of both the month-on-month and year-on-year data suggests many are likely finding little discretionary spend in the budget.

"It’s positive to see some stability – and even some easing – in the average value of transactions, which could hopefully indicate some relief on the horizon for people’s hip pockets.

"We know that the current economic conditions are putting significant pressures on some people and I encourage any customers experiencing financial difficulties to contact us, so we can support their individual circumstances."

Overall transaction change

  Number of customers transacting
(%)
Total volume of transactions
(%)
Total value of transactions
(%)
Month-on-Month
Mar 24-v-Apr 24
-0.7
-3
-2
Year-on-Year
Apr 23-v-Apr 24
-3.4
-3
+7
 
Number of customers transacting
(%)
Total volume of transactions
(%)
Total value of transactions
(%)
Month-on-Month
Mar 24-v-Apr 24
-0.7
-3
-2
Year-on-Year
Apr 23-v-Apr 24
-3.4
-3
+7

Where Western Australians are spending Month-on-Month

Sectors by volume of unique customers transacting
Biggest growth in number of unique customers transacting % Smallest growth in number of unique customers transacting %
Auto rental
+5
Education
-10
Repair shops
+4
Discount stores
-5
Sporting/Toy stores
+4
Department stores
-3
Biggest growth in number of unique customers transacting
%
Smallest growth in number of unique customers transacting
%
Auto rental
+5
Education
-10
Repair shops
+4
Discount stores
-5
Sporting/Toy stores
+4
Department stores
-3

Where Western Australians are spending Year-on-Year

Sectors by volume of unique customers transacting
Biggest growth in number of unique customers transacting % Smallest growth in number of unique customers transacting %
Airline
+2
Repair shops
-30
Education
+1
Electric appliances
-12
Other services
0
Clothing stores
-10
Biggest growth in number of unique customers transacting
%
Smallest growth in number of unique customers transacting
%
Airline
+2
Repair shops
-30
Education
+1
Electric appliances
-12
Other services
0
Clothing stores
-10

Month-on-month (Mar 24-Apr 24) top 5 sectors by ...

Biggest growth in volume % Smallest growth in volume % Biggest growth in value % Smallest growth in value %
Repair shops
+12
Education
-15
Repair shops
+8
Professional services
-11
Utilities
+4
Professional services
-11
Other transport
+2
Sporting/Toy stores
-7
Other Transport
+3
Recreation
-8
Utilities
+2
Recreation
-7
Biggest growth in volume
%
Smallest growth in volume
%
Biggest growth in value
%
Smallest growth in value
%
Repair shops
+12
Education
-15
Repair shops
+8
Professional services
-11
Utilities
+4
Professional services
-11
Other transport
+2
Sporting/Toy stores
-7
Other Transport
+3
Recreation
-8
Utilities
+2
Recreation
-7

Year-on-year (Apr 23-v-Apr 24) top 5 sectors by ...

Biggest growth in volume % Smallest growth in volume % Biggest growth in value % Smallest growth in value %
Education
+6
Repair shops
-22
Repair shops
+11
Auto rental
-11
Vehicles
+6
Discount stores
-15
Mail order
+10
Discount stores
-7
Pharmacies
+5
Clothing stores
-14
Utilities
+9
Airline
-7
Biggest growth in volume
%
Smallest growth in volume
%
Biggest growth in value
%
Smallest growth in value
%
Education
+6
Repair shops
-22
Repair shops
+11
Auto rental
-11
Vehicles
+6
Discount stores
-15
Mail order
+10
Discount stores
-7
Pharmacies
+5
Clothing stores
-14
Utilities
+9
Airline
-7

Generational snapshot

Year-on-year growth values by generation from Apr 23-Apr 24

  Number of unique customers transacting
(%)
Volume of transactions
(%)
Average value of transactions
(%)
Gen Z
+6
+11
+12
Millennials
-4.8
-4.1
+5
Gen X
-4.3
-4
+9
Baby boomers
-3.9
-3
+6
 
Number of unique customers transacting
(%)
Volume of transactions
(%)
Average value of transactions
(%)
Gen Z
+6
+11
+12
Millennials
-4.8
-4.1
+5
Gen X
-4.3
-4
+9
Baby boomers
-3.9
-3
+6

Sector examples

Sector Examples
Airlines
Self-explanatory
Auto rental
Self-explanatory (general and commercial)
Clothing stores
Single-brand stores, as opposed to multi-brand department Store retailers
Department stores
Large department stores and chains, not including discount department stores
Discount stores
Discount department stores and budget lifestyle and homeware retailers
Electrical appliance
Whitegoods retailers, home entertainment stores, mobile and computing device outlets, computer games
Food stores/Warehouses
Includes grocery stores, as well as wholesale food distribution warehouses
Hardware
Hardware retailers and chains, landscaping specialists, home DIY retailers
Hotels/Motels
Self-explanatory
Other retail
Online marketplaces, online arms of bricks-and-mortar retailers, discount department stores, liquor stores
Other services
Courier services, public administration, newspaper subscriptions, roadside assistance companies
Other transport
Ride sharing companies, taxis, private and public paid parking
Pharmacies
Self-explanatory
Professional services
All types of insurance, waste disposal services
Quasi cash
Casino and gambling activities
Repair shops
Cobblers, tailors, electrical appliance repairs, watchmakers, mobile phone repairs
Restaurants/Bars
Self-explanatory
Service stations
Self-explanatory
Sporting/Toy stores
Non-digital game retailers, outdoor recreation stores, sporting goods, apparel and footwear outlets
Travel agencies
Self-explanatory (online and bricks-and-mortar)
Utilities
Typical utility services, streaming services
Vehicles
Automotive dealerships, automotive and car care accessory retailers, repairs and servicing
Sector
Examples
Airlines
Self-explanatory
Auto rental
Self-explanatory (general and commercial)
Clothing stores
Single-brand stores, as opposed to multi-brand department Store retailers
Department stores
Large department stores and chains, not including discount department stores
Discount stores
Discount department stores and budget lifestyle and homeware retailers
Electrical appliance
Whitegoods retailers, home entertainment stores, mobile and computing device outlets, computer games
Food stores/Warehouses
Includes grocery stores, as well as wholesale food distribution warehouses
Hardware
Hardware retailers and chains, landscaping specialists, home DIY retailers
Hotels/Motels
Self-explanatory
Other retail
Online marketplaces, online arms of bricks-and-mortar retailers, discount department stores, liquor stores
Other services
Courier services, public administration, newspaper subscriptions, roadside assistance companies
Other transport
Ride sharing companies, taxis, private and public paid parking
Pharmacies
Self-explanatory
Professional services
All types of insurance, waste disposal services
Quasi cash
Casino and gambling activities
Repair shops
Cobblers, tailors, electrical appliance repairs, watchmakers, mobile phone repairs
Restaurants/Bars
Self-explanatory
Service stations
Self-explanatory
Sporting/Toy stores
Non-digital game retailers, outdoor recreation stores, sporting goods, apparel and footwear outlets
Travel agencies
Self-explanatory (online and bricks-and-mortar)
Utilities
Typical utility services, streaming services
Vehicles
Automotive dealerships, automotive and car care accessory retailers, repairs and servicing

About Bankwest
Bankwest’s vision is to be a simple, easy bank for the Australian homeowner of today and tomorrow, and our purpose is to build a brighter future for all. Bankwest provides personal and everyday banking solutions for customers across Australia. We support customers in doing their banking in the ways that suit them, with innovative digital solutions, an Australia-based 24/7 Contact Centre, a passionate broker community, and our WA branch network. Bankwest is a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL/Australian credit license 234945.

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