January retail sales sizzle: ARA

POST-CHRISTMAS sales, back to school, and warm weather fired up the Australian retail sector in January, according to the Australian Retailers Association (ARA), with the Australian Bureau of Statistics (ABS) Retail Trade data for January 2016 showing year on year growth of four percent.

ARA Executive Director, Russell Zimmerman, expressed hope that the January sales increase will set the pace for the coming year, with Australian retailers crossing their fingers for a buoyant 2016.

January’s four percent growth year on year growth is identical to that of December 2015, and reflects a total retail spend by of Aussies of $24.8 billion for the month.

Year on year figures provide the most accurate measure of the sector’s performance and are the figures used by most retail businesses in their own reporting. January 2016 sales showed a 0.3 percent increase over December 2015’s static result.

“The first month of 2016 experienced a healthy level of growth, well in line with the ARA’s expectations,” said Mr Zimmerman. “While this is a great start to the new year, what we really would like to see is sustained, incremental rises in retail sales.

“Retailers are now coming off the strongest trading period of the year, being December and January, and maintaining the momentum of Christmas and post-Christmas is vital,” he said.

The biggest winners in the January spending stakes were household goods and other retailing, with 5.8 percent and 4.8 percent growth respectively. Clothing, footwear, and personal accessories were hot on their heels at 4.7 percent rise.

“Post-Christmas sales, and parents and children preparing for the new school year are responsible for the bulk of January’s growth. Balmy summer temperatures combined with some January discounts on summer season apparel also contributed to the boost,” said Mr Zimmerman.

Department stores had the smallest increase, at one percent, coming off the back of very pleasing five percent year on year growth in December.

State-wise, the ACT saw a tremendous increase of an unprecedented 7.7 percent – a level not seen since June 2015. NSW beat out rival, Victoria, with the two posting rises of 5.2 percent and five percent respectively.

“Victoria has been the forerunner when it comes to retail sales growth for the past few months, and to have the ACT demonstrate such a considerable increase is wonderful news, given it follows on from handful of slower months,” he said.

YEAR ON YEAR RETAIL GROWTH (January 2015 to January 2016 seasonally adjusted)

By category:

Food, four percent; household goods, 5.8 percent; clothing, footwear and personal accessories, 4.7 percent; department stores, one percent; other retailing, 4.8 percent; cafés, restaurants and takeaway foods, two percent.

By state:

NSW, 5.2 percent; Victoria, five percent; Queensland, 2.4 percent; South Australia, 4.2 percent; Western Australia, 1.3 percent; Tasmania, 4.7 percent; Northern Territory, 4.7 percent; and Australian Capital Territory, 7.7 percent.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s more than $300 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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