Focus: Why Kiwis are 'downgrading' as new PriceSpy shopping habits revealed

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The way Kiwis are choosing to shop is changing with new data suggesting we are steering away from purchasing the latest and greatest gadgets.

PriceSpy research found average price points across popular shopping categories increased when compared to last year.

However, the average price of the products shoppers actually purchased dropped, suggesting more Kiwis are downgrading their purchase decisions.

"Last year the country was still in lockdown, and people were upgrading their homes, buying the latest gadgets and this year with inflation affecting the prices we see indications that people are choosing older models or brands that cost less," PriceSpy country manager Liisa Matinvesi-Bassett told Focus.

Spending behaviour has shifted from a spike in online shopping at the start of the pandemic when 37 per cent of Kiwis ordered products from sites, to now just 17 per cent.

But the desire for better deals has seen big retailers like Mighty Ape be one of the few to thrive after they opted to invest in value range products early.

"We offer alternatives in almost every segment so in all those categories we've seen growth," Mighty Ape chief marketing officer Tim Wackrow said.

"That's because more people are looking for alternatives that are cheaper or more value focused.

"Being owned by Kogan, which is a value electronics importer in Australia, that range of products has seen a massive increase."

Wackrow added the best advice though was to read reviews and compare prices.

"Not every product is created equal, looking at reviews gives you a good idea of how other people have experienced that product and making sure the retailer will support the product if anything does go wrong with it."