New Roy Morgan data has revealed that global online retailers like Shein and Temu are reshaping Australians’ perceptions of value, with “cheap” becoming even cheaper as most traditional discount stores lose their hold on price perception.
According to Roy Morgan, Kmart and Big W continue to lead on low-price perception, with 58 per cent and 45 per cent of Australians respectively associating these brands with the statement “has low prices”.
However, the research firm noted that over the past five years, most traditional discount retailers have seen declines in this measure, while Amazon, Temu, and Shein have recorded notable gains.
Cheap perceptions on The Reject Shop – soon to be renamed as “Dollarama” following its acquisition by the Canadian retailer – has dropped 18 percentage points since 2020, Big W is down 10 percentage points and Target is down seven percentage points.
Cheap perceptions for Amazon, meanwhile, have lifted by seven percentage points.
However, since October 2024, Temu’s “low price” association has risen from 34 per cent to 41 per cent (up 7ppts) in the recent year, surpassing The Reject Shop. Shein has risen from 23 per cent to 27 per cent (up 4ppts) during this same period, now sitting on par with Bunnings and Target.
Roy Morgan’s head of retail and consumer products Catherine Jolley said cheap is getting even cheaper in the retail space, where fashion makes up a key portion.
“The rise of ultra-low-cost online marketplaces is recalibrating what consumers now consider a ‘normal’ price,” Jolley said. “The traditional price anchors, those mental reference points we all have for how much something should cost, have collapsed in some categories.
“Players like Temu, Shein, Amazon and soon Dollarama, are resetting those anchors and dragging price expectations down across the board.
But there is a caveat, Jolley noted. These price perception shifts are not uniform.
“It’s most pronounced in discretionary categories like clothing, while other segments such as hardware have held their ground,” Jolley said. “The result? Pricing and positioning strategies are under real pressure, and it’s forcing many retailers to rethink where and how they compete.”