Online bargain hunters spend more
British shoppers are constantly on the hunt for a bargain, but according to consumer insight released from PayPal's annual UK Online Retail Report, Britain's obsessive bargain hunters actually spend up to 50% more online than shoppers willing to pay the price on the ticket.
Whether they shop online or on the high street, nearly nine in 10 people (over 43 million or 88%) say they now constantly look for special offers and promotions - an increase of nearly 1.5 million from 85% in 2009. Getting money off is part of everyday shopping as three in five shoppers (62%) have used discount vouchers or codes in the last six months. Over half (53%) of online shoppers now compare prices and look for deals even on their smaller everyday purchases.
Who are the nation's bargain hunters?
Women have led the nation's search for bargains. Over nine in 10 (93%) women are always on the lookout for special offers and promotions compared to 84% of men.
PayPal looked at shoppers' attitudes to price, deals and discounts and discovered five distinct groups of bargain hunters: Discount obsessed ‘Cut Throat' shoppers are at one end of the bargain hunting scale and more relaxed ‘Uncut' shoppers who rarely, if ever, seek out a deal sit at the other end.
As many as 18 million adults across the UK (37%) obsessively look for bargains and use every money-saving tool around - described in the report as ‘Cut Throat' and ‘Cut Price' shoppers.
One in six over 65s hardly ever search for discounts and usually pay the full price, while less than one in 10 over 65s could be described as ‘Cut Throat'. The most obsessive bargain hunters are aged between 25 and 44.
Those living in the London and the West Midlands are the least thrifty, with 13% of them being ‘Uncut' shoppers. Whereas people from the South West and Wales are the most price-focused, with 41% of shoppers showing ‘Cut Throat' or ‘Cut Price' shopper behaviours.
Bargain hunting: Getting value is not all about spending the least
But bargain hunters' seemingly thrifty behaviour doesn't mean they spend less online: the PayPal UK Online Retail Report shows the ‘Cut Throat' shopper has spent on average £823 more online than the ‘Uncut' shopper over the last six months.
‘Cut Throat' consumers who bought groceries online over the last six months report the highest average spend in this area, forking out £135 (27%) more than the average online shopper spends in six months (£639 compared to £504).
Similarly, ‘Cut Price' consumers who bought travel products such as holidays, flights or train tickets online in the last six months have spent the most in this area - £1060 compared to the average of £961.
Cameron McLean, General Manager, Merchant Services, at PayPal UK, said: "Our research shows that online bargain hunters are often the biggest spenders. That's good news for retailers, as they recognise that lower prices can be good for business. But it's also great for a new generation of shoppers who expect to get better value for money."
Author and Personal finance journalist Sue Hayward, who contributed to the report, comments: "I think most people are looking to make their money go further rather than cutting back. If you have a budget of £300 and you can get a washing machine £50 cheaper online, most people will trade up and get a better quality model online or via a department store or clearance website, rather than pocket the saving."
Saving money on shopping has become easier now we can compare prices online. Many retailers also offer additional discounts when you shop online rather than visit them on the high street. PayPal Offers brings together a wide range of deals from some of the 165,000 retailers' websites across Europe who take PayPal. To check on the latest deals available log onto paypal.co.uk/offers. This week there are deals from House of Fraser, Halfords, Interflora and Boots amongst others.