Retail sales continue gains

 

Shopping centre, shellharbour

Australian retail spending continues to remain strong, rising five per cent in August, seasonally adjusted, compared with August 2013, according to The Australian Bureau of Statistics (ABS).

The increase follows year on year growth of 5.8 per cent in July. 

Month on month growth was slower, rising by 0.1 per cent over July.  Total retail spending was $23.312 billion in August, up from $23.297 billion in July.

The highest increase from July was see in food retailing and clothing, footwear, and personal accessory retailing, at 0.3 per cent; followed by cafes, restaurants, and takeaway food services, 0.2 per cent; and other retailing, 1.6 per cent.

These rises were partially offset by falls in department stores, 2.9 per cent; and household goods retailing; 0.8 per cent.

Australian Retailers Association, executive director, Russell Zimmerman, said retailers enjoyed only a small increase in sales in August.

“While we are hopeful that September figures will continue to highlight positive growth with the change in season encouraging consumers to update their wardrobes, it is imperative that the Federal Government and RBA do all that they can to ensure that retail trade is fully supported. The festive season is also fast approaching and interest rates must remain low in order to support business,” Zimmerman said.

By state, the biggest growth was seen in Northern Territory, 1.7 per cent; followed by Victoria, 0.7 per cent; and Western Australia, 0.1 per cent.

South Australia remained the same, while Queensland, recorded a decline of 0.6 per cent, followed by Australian Capital Territory, 0.4 per cent; and NSW, 0.1 per cent.

Australian National Retailers’ Association (ANRA) deputy chief, Russell Goss, said falling confidence and a soft labour market are the most likely factors leading consumers to slow spending in August. 

“It’s important to note that while today’s result is smaller than expected, retail sales are on a positive trajectory and are continuing to track in the right direction. There is no indication that August’s result will hamper our expectations for the sector to deliver six per cent year on year growth by the end of the year,” said Goss.

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