September retail sales remained sluggish, according to the Australian Retailers Association, but an analyst points out that the last quarter’s result was the best turnover in more than two years.
“Retail volumes rose 0.4 per cent in the September quarter, marking the largest quarterly increase since the June quarter 2022, and that suggests that household consumption may be a little stronger in the September quarter than we’ve recently seen,” said Callam Pickering, Apac economist at Indeed.
“Volumes are still 1.4 per cent below their peak, with volumes per capita down 6.3 per cent, after declining for nine consecutive quarters.”
Australian Bureau of Statistics (ABS) data showed that retail sales grew 2.3 per cent year over year to $36.45 billion in September.
The ‘other retailing’ category – which includes cosmetics, sports, and recreational goods – posted the highest growth of 5.2 per cent to $5.74 billion.
Food retail sales rose 3.1 per cent to $14.5 billion, while cafes, restaurants, and takeaway climbed 1.4 per cent to $5.46 billion.
Clothing, footwear, and accessories increased 0.8 per cent to $3.04 billion, and household goods improved 0.03 per cent to $5.82 billion.
Meanwhile, department stores declined 0.2 per cent to $1.91 billion.
Pickering noted that an interest rate cut is a much-needed boost for retailer sales, a sentiment shared by both retail organisations.
“We are calling on the Reserve Bank of Australia to provide a cash-rate cut when it meets next week,” said Paul Zahra, ARA CEO.
“This decision would give confidence to the retail sector in the lead-up to the all-important peak Christmas season where many discretionary retailers make up to two-thirds of their profits.”
“Just yesterday the ABS revealed that inflation had at long last dropped to within the prescribed range of the RBA,” said Lindsay Carroll, interim CEO of the National Retail Association (NRA).
“We think it therefore entirely justifiable that the RBA takes a serious look at a long-awaited cut to the official interest rate.”
By state, the NT recorded the highest growth in retail sales at 4.6 per cent, followed by WA at 4.5 per cent and Queensland at 3.8 per cent. NSW had the most negligible growth of 1 per cent.
