Retailers are braced for another tough year ahead as three quarters of consumers plan to become even thriftier by spending less, seeking out sales (61%) or cutting their spending drastically (14%) in the next twelve months.

ARA Consumer Spending Confidence research says:

• 75% will spend less, seek out sales or cut drastically in next 12 months
• 61% of consumers uncertain about Australia's financial future
• 65% believe in saving not spending
• 55% shop at different store for price over convenience
• Almost 50% would forgo best brand for best price
• 52% spend time researching price online before buying

Retailers are braced for another tough year ahead as three quarters of consumers plan to become even thriftier by spending less, seeking out sales (61%) or cutting their spending drastically (14%) in the next twelve months, according to new research released by  the Australian Retailers Association (ARA) and Interconsult.

ARA Executive Director Russell Zimmerman said results from the ARA Consumer Spending Confidence Survey, showing two thirds (65%) of consumers agreed saving was more important than spending, were bad news for retailers who had been hoping spring sales would bump-up otherwise dismal trade.

"Around about half of consumer respondents said they were choosing stores based on price not convenience (55%), they were doing without better quality brands to save money (almost 50%) and they were spending time researching prices online to find the best deals before buying (52 percent).

"It seems consumer's penchant for spending less and saving more has more to do with the nation's economic conditions than individual incomes with 45 percent expecting no change in their current financial situation but over 60% uncertain about financial times ahead for Australia.

"This level of uncertainty would only be exacerbated by the current hung parliament and political climate.

"However, the level of disposable household income did impact spending plans for the next 12 months, with the 25 percent of respondents who reported they wouldn't change their current spending habits, tending to be older couples with no children at home and those with incomes over $100,000," Zimmerman said.

The ARA Consumer Spending Confidence Survey was prepared by Interconsult for the Australian Retailers Association.

A total of 1006 participants from an online panel were surveyed across Australia.

The survey was conducted from 5/08/2010 to 10/08/2010.

Quotas were placed on gender, age and location to ensure representation of the population.

For over 105 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people.

As an incorporated employer body under the Fair Work (Registered Organisations) Act 2009 the ARA promotes and protects over 5000 independent and national retailers throughout Australia.