Budget stores are faring well down under

In these austere times it is unsurprising that budget shops are proving to be popular among Australians.

Many households have been forced to rein in their spending and a lot of people are shunning credit cards in favour of debit cards.

This is a good way to stick to a budget and the temptation to rack up a huge credit card debt is removed.

Another obvious way to combat the rising cost of living is to look for the cheapest prices on everyday items.

According to new statistics released by Roy Morgan Research, Kmart is faring well because it has built a solid reputation as a budget store.

The organisation discovered that the company's sales have increased by 12 per cent in the past two years, which highlights the fact that many Aussies are keeping a tight grip on their purse strings.

"This is a good success story for Kmart at a time when most traditional retailers are losing customers," commented industry communications director at Roy Morgan Research Norman Morris.

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