August retail figures a major concern leading into Christmas

THE Australian Retailers Association (ARA) said the August trade figures released by the Australian Bureau of Statistics (ABS) represent a lower than expected move towards Spring with a 2.13 percent total growth year-on-year.

ARA Executive Director Russell Zimmerman said the August retail trade figures continued to show strong growth in the Other Retailing category which inlcudes gambling and online goods and services, however the broader retail categories have suffered significantly.

“With many historic challenges affecting the Australian industry these past few months, we have expected to see the sector suffer,” Mr Zimmerman said.

“With increased energy costs, higher tax burdens and an inflexible wage system, we need Government action to increase consumer and business confidence.”

Alongside Other Retailing, Food Retailing (2.30%) and Household Goods (2.01%) show moderate year-on-year growth.

The retail categories showing a significant hit to year-on-year sales growth include Cafes Restaurants and Takeaway Food (1.92%), Clothing Footwear & Personal Accessories (0.89%) and Department Stores (-1.35%).

“These August figures have seen Takeaway Food Services receive a -0.80% year-on-year growth, the first negative figures for this category in over 15 months,” Mr Zimmerman said.

Although Department Stores (-1.35%), Newspapers & Books (-3.87) and Hardware & Building (-0.47%) also received negative year-on-year growth figures, the drop in Takeaway Food is quite concerning for the industry.

“July month-to-month retail trade figures saw a return to growth for Department stores, to see these figures go backwards is of high concern to the sector.”

All states recorded a drop in growth year-on year, an undesirable sign for the months ahead. Victoria (3.41%) and New South Wales (2.91%) showed the strongest year-on-year growth of the States. With Tasmania (1.92%), the Northern Territory (1.71%), the Australian Capital Territory (1.69%) and South Australia (1.36%) trailing behind. Both Queensland (0.37%) and Western Australia (0.81%) again showed the least year-on-year growth across the nation.

“As we lead into Spring racing and the beginning of the Christmas season we expect to see a pickup in both Food Retailing and Clothing, Footwear and Accessories,” Mr Zimmerman said.

MONTHLY RETAIL GROWTH (July 2017– August 2017 seasonally adjusted) 

Department stores (0.67%), Other retailing (0.06%), Clothing, footwear and personal accessory retailing (-0.16%), Food retailing (-0.63%), Household goods retailing (-1.02%) and Cafes, restaurants and takeaway food services (-1.27%).

New South Wales (-0.25%), South Australia (-0.57%), Western Australia (-0.62%), Tasmania (-0.68%), Northern Territory (-0.68%), Queensland (-0.78%), Victoria (-0.79%) and Australian Capital Territory (-0.81%).

Total sales (-1.27%). 

 

YEAR-ON-YEAR RETAIL GROWTH (August 2016 – August 2017 seasonally adjusted)

Other retailing (4.92%), Food retailing (2.30%), Household goods retailing (2.01%), Cafes, restaurants and takeaway food services (1.92%), Clothing, footwear and personal accessory retailing (0.89%) and Department stores (-1.35%). 

Victoria (3.41%), New South Wales (2.91%), Tasmania (1.92%), Northern Territory (1.71%), Australian Capital Territory (1.69%), South Australia (1.36%), Western Australia (0.81%) and Queensland (0.37%).

Total sales (2.13%).

 

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 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 7,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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