ABS June 2014 retail trade figures – change of season and mid-year sales provide retailers will short term relief

 PEAK retail industry body the Australian Retailers Association (ARA) said the seasonally adjusted rise (0.6 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a -0.5 percent fall in April 2014.

Year on year retail growth also rose 5.5 percent in June 2014, seasonally adjusted, compared to June 2013.

ARA Executive Director Russell Zimmerman said that after an unseasonably warm autumn and post-Federal Budget drop in consumer confidence, retailers breathed a sigh of relief in June as the winter chill slowly started to settle in.

“Although retailers reported sales to be patchy, consumers finally started to stock up on their winter wardrobes and household items. Clothing, footwear and personal accessory retailing experienced an increase during June (1.4% increase) and household goods retailing also got boost from the change of season (1.7%).

“This increased activity also coincided with the launch of the mid-year stocktake sales period, with many retailers launching major sales mid-June.

“According to the Australian Retail Index (delivered by BDO and Retail Express), the retail sector finished the 2013-14 financial year on a relatively strong note, recovering somewhat in June from the post-Federal Budget downturn. The Index warned, however, that retailers should expect activity to be short lived over the remaining cooler months with historic consumer confidence showing a dip in sales between August and October.

“Overall, turnover rose in New South Wales (0.9%), Victoria (0.6%), Western Australia (1.1%), South Australia (0.5%), Tasmania (1.3%) and the Northern Territory (0.3%). Queensland was relatively unchanged (0.0%). There was a fall in the Australian Capital Territory (-0.5%).

“The Federal Government must now do all that it can to ensure that retail trade does not suffer as we gear up toward the spring/summer racing season and also the Christmas trading period.

“On this note, the ARA also strongly urges the RBA to cut interest rates when they meet tomorrow,” Mr Zimmerman said. 

MONTHLY RETAIL GROWTH (May 2014 – June 2014 seasonally adjusted)

Household goods retailing (1.7%), Clothing, footwear and personal accessory retailing (1.4%), Other retailing (0.9%), Food retailing (0.5%), Department stores (-0.5%) and Cafes, restaurants and takeaway food services (-0.6%). Total sales (0.6%). 

Tasmania (1.3), Western Australia (1.1%), New South Wales (0.9%), Victoria (0.6%), South Australia (0.5%), Northern Territory (0.3%), Queensland (0.0%) and Australian Capital Territory (-0.5%). Total sales (0.6%).

YEAR-ON-YEAR RETAIL GROWTH (June  2013 – June 2014 seasonally adjusted)

Cafes, restaurants and takeaway food services (9.6%), Household goods retailing (7.3%), Food retailing (5.7%), Other retailing (4.2%) Clothing, footwear and personal accessory retailing (3.5%) and Department stores (-3.2%). Total sales (5.5%).

Tasmania (10.6%), New South Wales (8.7%), Northern Territory (7.7%), Victoria (6.1%), Queensland (3.3%), South Australia (2.7%), Western Australia (1.6%) and Australian Capital Territory (-2.2%). Total sales (5.5%).

*

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

ends