Retail turnover held steady overall in July 2024, according to figures released by the Australia Bureau of Statistics on Friday.
The unchanged rate followed growth of 0.5 per cent in June and May. Ben Dorber, ABS head of retail statistics, attributed the rises to mid-year sales activity.
Most industries recorded a fall or flat result
Despite the unchanged turnover rate, most industries recorded a fall or flat result this July. The only industry that reported a rise was food retailing (0.2 per cent).
The following industries reported falls:
- Clothing, footwear and personal accessory retailing (-0.5 per cent)
- Department stores (-0.4 per cent)
- Cafes, restaurants and takeaway food services (-0.2 per cent)
States and territories saw mixed results
Western Australia’s retail turnover rate rose for the seventh consecutive month, up 4.6 per cent month-on-month. The Northern Territory, Queensland, and Victoria also reported rises (of 0.5, 0.2, and 0.1 per cent respectively). The ACT, Tasmania, South Australia, and New South Wales saw more dramatic falls (-0.9, -0.8, -0.3 and -0.2 per cent respectively).
The bigger picture
Recent analysis by Deloitte of ABS data from the entire June 2024 quarter shows that real retail spending has declined in six of the last seven quarters. Deloitte Access Economics partner, David Rumens, concluded: “The evidence shows that Australia’s retail sector has effectively been in recession for the last 18 months.”
A report released earlier this month that focussed specifically on small retailers painted a similar picture. Released earlier this month, the Australian Retailers Association (ARA) and American Express Small Retail Index found that 59 per cent of small retailers were concerned about the slowdown in consumer spending.
“Unfortunately, many [small retailers] are struggling to cope with rising inflation, steep interest rates, and the cost-of-doing-business crunch,” ARA CEO Paul Zahra said.
