Australian retail sales moderately improved in July, which Australian Bureau of Statistics (ABS) data attributed to the continuation of mid-year sales.
July turnover grew 2.3 per cent year over year to $36.16 billion, with the ‘other retailing’ segment, which includes cosmetics, sports, and recreational goods, recording the highest growth, of 5.5 per cent, reaching $5.66 billion.
Food jumped 3.2 per cent to $14.44 billion, while household goods climbed 1.5 per cent to $5.82 billion.
Clothing, footwear, and accessories grew 0.5 per cent to $2.98 billion, and department stores went up 0.1 per cent to $1.88 billion.
Cafes, restaurants, and takeaway sales fell 0.3 per cent to $5.37 billion.
“As tough times continue, we are seeing the so-called ‘lipstick effect’ play out – where people are having to do more with less,” said Paul Zahra, CEO of the Australian Retailers Association (ARA).
“There are trade-offs in this budget-conscious environment and in July we saw people replacing dining out with food from their local supermarket, allowing some spending on personal luxuries.”
NSW had the largest sales of $11.2 billion, up 1.2 per cent, followed by Victoria, which increased 2.3 per cent to $9.32 billion.
In Queensland, sales grew by 3.3 per cent to $7.46 billion, in SA by 4.2 per cent to $2.32 billion, and in WA by 4.6 per cent to $4.14 billion.
Tasmanian sales rose by 2.6 per cent to $717 million and in the NT by 4.7 per cent to $337 million. ACT sales improved 0.9 per cent to $676 million.
“Most smaller retailers cannot afford to rely on heavy discounting strategies to get by, and it is inevitably these businesses that exit the market,” said Lindsay Carroll, interim CEO of the National Retail Association (NRA), commenting on the data.
“We call on policymakers to create a more supportive environment for Australian businesses, one that’s fit for investment and one with a future for aspiring retail owners.”
