Retail spending grew 2.1 per cent year-on-year in July as consumers spent more than $35.3 billion in stores and online, according to data from the Australian Bureau of Statistics (ABS).
Food sales (up 4.9 per cent) and cafes, restaurants and takeaway sales (up 9 per cent) bolstered overall retail activity.
Meanwhile, other categories recorded “negative sales for the second consecutive month” with household goods down 4.9 per cent followed by clothing, footwear and accessories sales down 0.3 per cent and department stores sales slipping by 0.05 per cent.
Australian Retailers Association (ARA) CEO Paul Zahra said sales growth overall continued to be driven by “unavoidable price increases”.
“Retail sales data is showing a clear delineation between spending on essentials and discretionary goods, with food continuing to record growth mainly due to unavoidable price increases while other categories remained in decline.”
To ease their budgets, Zahra said shoppers are cutting back on spending and are instead opting for value options.
By state, ACT led growth by 6.1 per cent followed by SA at 4.1 per cent, WA at 3.5 per cent, NT at 3.5 per cent, Victoria at 2.4 per cent, NSW at 1.6 per cent, Tasmania at 0.8 per cent and Queensland at 0.7 per cent.
National Retail Association CEO, Greg Griffith, said the Women’s World Cup boosted retail spending last month however cautioned retailers aren’t fully “out of the woods” yet.
“Overall discretionary spending received a boost in sales, indicating declining consumer confidence had little impact on spending behaviour when it came to cheering on the Matildas or shopping for the kids.
“The sector is still battling increasing operational costs, labour shortages, threats to casual employment, and increasing wages,” said Griffith.
