STEADY GROWTH FOR RETAILERS THIS JUNE
Friday 4 August, 2017: The Australian Retailers Association (ARA) said the June trade figures released today by the Australian Bureau of Statistics (ABS) remain steady with 3.80% total growth year-on-year.
ARA Executive Director Russell Zimmerman said the June retail trade figures remain positive due to the continual growth in Food retailing.
“Although we see a robust 3.8% year-on-year growth the main driving force of this increase stems from Supermarkets and grocery stores with a sturdy 4% growth year-on-year,” Mr Zimmerman said.
“As Food Retailing represents 40% of overall retail trade, this continual surge in Food Retailing reflects somewhat positively on the overall industry.”
The Household Goods category saw the strongest year-on-year increase with an overall 5.88% increase, this included a substantial growth in Furniture sales which received a 10.54% year-on-year increase.
“We usually see home owners increase their spending on household goods when housing values rise, and this month’s retail trade figures reflect the high consumer confidence home owners felt in June,” Mr Zimmerman said.
“Hardware figures also proved positive with a 3.73% year-on-year increase, their strongest retail trade figures since December since the closure of Masters around the country.”
Clothing Footwear and Personal Accessories figures dropped significantly in June with a 1.71% year-on-year increase, compared to the 3.76% year-on-year increase the category received in May.
“This substantial drop shows a very volatile retail market as the last few months sales have been driven by the weather and significant discounting,” Mr Zimmerman said.
June trade figures remained steady across the board with all states showing a stable growth. Australian Capital Territory (5.33%) and Tasmania (5.12%) lead the pack with robust year-on-year growth. While South Australia (4.69%), New South Wales (4.65%), Victoria (4.49%) and Northern Territory (3.52%) also showed a moderate year-on-year increase. Both Queensland (2.67%) and Western Australia (0.86%) trailed behind the other states but still presented fairly stable figures.
“This steady growth across the industry isn’t uncommon with the rise of global giants entering the Australian market,” Mr Zimmerman said.
“With Amazon recently purchasing land in Victoria we know the retail market is changing and those retailers who redefine their businesses to adapt to the shifting environment will thrive in the dynamic retail landscape.”
MONTHLY RETAIL GROWTH (May 2017– June 2017 seasonally adjusted)
Household goods retailing (0.90%), Other retailing (0.19%), Food retailing (-0.03%), Clothing, footwear and personal accessory retailing (0.77%), Cafes, restaurants and takeaway food services (0.52%) and Department stores (-0.31%).
Northern Territory (1.22%), New South Wales (0.54%), Tasmania (0.63%), Western Australia (0.10%), South Australia (0.26%), Australian Capital Territory (-0.14%), Queensland (0.69%), and Victoria (-0.29%).
Total sales (0.28%).
YEAR-ON-YEAR RETAIL GROWTH (June 2016 – June 2017 seasonally adjusted)
Household goods retailing (5.88%), Cafes, restaurants and takeaway food services (5.58%), Food retailing (3.78%), Clothing, footwear and personal accessory retailing (1.72%), Other retailing (2.92%) and Department stores (-1.08%). Total sales (3.8%).
Australian Capital Territory (5.33%), Tasmania (5.12%), South Australia (4.69%), New South Wales (4.65%), Victoria (4.49%), Northern Territory (3.52%), Queensland (2.67%) and Western Australia (0.86%).
Total sales (3.80%).