‘Tightening of belts’: end of fuel tax relief to put brakes on spending

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‘Tightening of belts’: end of fuel tax relief to put brakes on spending
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Home improvement retailers including Bunnings say shoppers are already focusing on value to stretch budgets. | By Emma Koehn

The impending end of the fuel tax relief could potentially put the brakes on consumer spending as home improvement retailers including Bunnings say shoppers are focusing on value to stretch budgets.

“While a modest share of spending, it is a deemed ‘grudge’ purchase, with the price frequently observed such that it could impact overall spending,” retail analyst Shaun Cousins wrote in a note to clients this week. Retailers in the DIY and home goods sectors agree that consumers are paying much closer attention to the individual price of products.

The retailer is also focused on the breadth of its ranges across all of its categories in hopes of appealing to shoppers regardless of the price point, he said.

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