Retailers need a consumer confidence boost

THE Australian Retailers Association (ARA) believes July trade figures released today by the Australian Bureau of Statistics (ABS) represent a fair trade for July, with a 2.89 percent total growth year-on-year.

Russell Zimmerman, executive director of the ARA, said July’s trade figures were driven by strong growth in the Supermarket category which reached a 4 percent year-on-year growth.

“With food accounting for the bulk of overall retail trade, this July we saw Specialised food reach a 5.7 percent year-on-year growth and Liquor receive a 3 percent increase,” Mr Zimmerman said.

“Although the latest Roy Morgan Net Trust Score survey revealed the most trusted industry is the retail sector, retailers still need a consumer confidence boost.”

With retailers facing increased overheads, the ARA saw Clothing, footwear and personal accessories suffer a low year-on-year growth of 2.74 percent.

“July is always a tough month for fashion retailers because their winter stock slows down and their summer stock hasn’t had enough time to gain traction,” Mr Zimmerman said.

“This July we saw Clothing retail reach a 4.10 percent growth year-on-year, compared to a 7.35 percent increase received in June. Further to this, we saw Footwear and personal accessories post a -0.02 percent decline in July compared to the 1.05 percent increase this category received in June.”

Across the country, Victoria (5.15%) and Tasmania (4.48%) showed the strongest growth in July, closely followed by New South Wales (3.36%), the Australian Capital Territory (3.34%) and South Australia (2.68%). Queensland (1.65%) and the Northern Territory (0.68%) remained steady, while Western Australia (-1.50%) was in negative territory for the third month in a row.

“With many businesses celebrating their end of financial year functions, Cafés, restaurant and takeaway food services saw a moderate to high year-on-year growth of 2.9 percent,” Mr Zimmerman said.

“We also saw the Pharmaceutical, cosmetic and toiletry category receive a 3 percent year-on-year increase with this year’s winter ending on a cold note.”

Moving forward, the ARA would like retailers to see external factors put out of mind for retailers, who are hoping for a consumer confidence boost to assist with sales.

“Retail can only survive with increased business and consumer confidence,” Mr Zimmerman said.

“And this confidence is driven by personal tax cuts and a strong and stable Government.”

Monthly Retail Growth (June 2018 - July 2018 seasonally adjusted) 

Other retailing (1.70%), Cafes, restaurants and takeaway food services (0.61%), Food retailing (0.34%), Household goods retailing (-1.20%), Department stores (-1.89%) and Clothing, footwear and personal accessory retailing (-1.97%).

Queensland (0.77%), Victoria (-0.02%), New South Wales (-0.15%), Tasmania (-0.33%), South Australia (-0.33%), Western Australia (-0.58%), Australian Capital Territory (-0.62%) and Northern Territory (-1.60%).

Total sales (-0.01%).

 

Year-on-Year Retail Growth (July 2017 – July 2018 seasonally adjusted)

Food retailing (4.04%), Cafés, restaurants and takeaway food services (2.90%), Other retailing (2.86%), Clothing, footwear and personal accessory retailing (2.74%), Household goods retailing (1.08%) and Department stores (0.63%).

Victoria (5.15%), Tasmania (4.48%), New South Wales (3.36%), Australian Capital Territory (3.34%), South Australia (2.68%), Queensland (1.65%), Northern Territory (0.68%) and Western Australia (-1.50%),

Total sales (2.89%).

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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