Year on year growth in retail sales remains strong despite easing moderately in the June quarter, says The 14th AFGC CHEP Retail Index released today.

The Index shows year on year retail sales growth was 5.2 per cent in the June quarter. down from 5.8 per cent in the March quarter, and year on year growth for the month of June was 4.9 per cent with a turnover of $23.11 billion, up from $23.01 billion in March.

Australian Food and Grocery Council CEO, Gary Dawson, said growth is still quite strong at around five per cent given that this period includes the impact on consumer sentiment of the May Federal Budget.

“Interest rates continue to remain low, and the labour market is picking up, so our expectation is 2014/15 will be a good year for retailers,” he said.

Looking ahead nationally, growth in the Index is expected to remain at the current pace, with a rise of 5.1 per cent forecast for both the September quarter and month of August, with a turnover of $23.32 billion forecast in August.

However, retail performance across the states continues to be variable, with Western Australia seeing no retail sales growth over the past year while NSW enjoyed eight per cent growth.

CHEP Australia and New Zealand president, Phillip Austin, said although some states are doing it tougher than others CHEP’s data insights show retail sales growth will continue to be strong overall in the next quarter.

“We will continue to work with manufacturers and retailers across the country to find increased supply chain efficiencies to support growth in the food and grocery retail sector,” he said.

The next AFGC CHEP Retail Index will be released in late October 2014. To read the Index visit www.afgc.org.au or http://www.chep.com/blog/home/