Source: ABS: Retail Trade, Australia, March 2023
According to the Australian Bureau of Statistics (ABS), retail sales volumes in Australia experienced a 0.6 percent decline during the March quarter of 2023
Key Highlights from the ABS report:
Declining Retail Sales Volumes: Australian retail sales volumes experienced a decline of 0.6 percent in the March quarter of 2023, following a 0.3 percent decrease in the previous quarter. This marks the second consecutive quarterly decline, indicating a challenging period for the retail industry.
Impact of Cost of Living Pressures: Mounting cost of living pressures are impacting household spending, leading to the decline in retail sales volumes. This suggests that consumers are facing financial constraints, affecting their purchasing behaviour.
Largest Decline Since 2009: Excluding the COVID-19 pandemic period, this is the largest decline in retail sales volumes since the September quarter of 2009. The magnitude of the decline highlights the severity of the current situation.
Slower Growth in Retail Prices: Retail prices have been consistently rising, but the growth rate has slowed to 0.6 percent in the March quarter. Discounts on clothing and large household items have contributed to this slowdown, although food retailing prices continue to rise.
Decline in Household Goods Retailing: Sales volumes for household goods retailing have experienced a significant decline of 3.7 percent, marking the fifth consecutive quarterly fall. Consumers are cutting back on large discretionary purchases in this sector, which had peaked during the COVID-19 pandemic in the December quarter of 2021.
Mixed Performance in Retail Sectors: While overall retail sales volumes fell by 0.8 percent in other sectors, department stores saw a 1.5 percent increase in sales volumes, and clothing, footwear, and personal accessory retailing experienced a 0.2 percent increase. Promotional activities and discounts played a role in boosting sales volumes in these sectors.
Growth in Cafes, Restaurants, and Takeaway Food Services: Despite rising costs being passed on to consumers, this sector recorded a 1.0 percent increase in sales volumes. The growth was driven by the resumption of large-scale cultural and sporting events, indicating increased consumer demand in this area.
Food Retailing Driven by Inflation: Food retailing sales volumes remained unchanged, but retail prices in this sector rose by 6.9 percent. The growth in turnover for food retailing over the past year has primarily been driven by food inflation, with minimal increase in actual volumes sold.
Mixed Results Across Regions: Different states and territories in Australia exhibited mixed results. Four regions experienced a decline in sales volumes, two regions saw an increase, and two regions remained relatively unchanged. Queensland had the largest dip in sales volumes, indicating a downward trend over the past three quarters.
Link to full report: