Despite retail sales growing in August, businesses are still urging the Reserve Bank of Australia to cut interest rates to help the sector thrive through the holiday season.
According to the Australian Bureau of Statistics (ABS), retail turnover increased 3.1 per cent year over year to $36.48 billion in August, attributed to the shift in weather pattern.
“This year was the warmest August on record since 1910, which saw more spending on items typically purchased in spring,” said Robert Ewing, head of business statistics at ABS.
“This included summer clothing, liquor, outdoor dining, hardware, gardening items, camping goods and outdoor equipment.”
Other categories, which include cosmetics, sports and recreational goods, had the highest growth of 6.5 per cent with sales amounting to $5.75 billion.
Food sales grew 3.8 per cent to $14.53 billion while department stores climbed 2.1 per cent to $1.92 billion.
Clothing, footwear, and accessories rose 2 per cent to $3.04 billion and household goods improved 1.4 per cent to $5.80 billion. Cafes, restaurants, and takeaways eased up 0.5 per cent to $5.44 billion.
“We typically see less spending during the colder months, which is why many retailers are shaking off the shackles of winter, embracing spring and gearing up for a hopeful festive season – with Christmas merchandise already instore,” said Paul Zahra, CEO of the Australian Retailers Association (ARA).
“This remains one of retail’s most difficult years – with a continued slowdown in discretionary spend, high business costs along with ongoing challenges such as retail crime, supply chain disruptions, and the most significant workplace relations reforms in decades.”
Among all regions, the NT saw the highest sales increase of 5.6 per cent, followed by WA at 4.6 per cent and Queensland at 4.2 per cent.
Tasmania rose 3.6 per cent, while Victoria climbed 3.0 per cent and NSW grew 2.6 per cent.
The ACT had the lowest growth of 1.6 per cent.
“We are asking our policymakers to give retailers some breathing room to recover during this year’s holiday sale season,” said Lindsay Carroll, interim CEO of the National Retail Association (NRA).
“Today’s ABS data is also an indicator that consumers are willing to spend on discretionary items if they serve a purpose, and the holiday season has always been a reason to spend.”
This article first appeared in our sister publication Inside Retail
