Anaemic sales growth for September not a good sign for Christmas - ARA

THE Australian Retailers Association (ARA) said the September trade figures released today by the Australian Bureau of Statistics (ABS) represent a disappointing move towards Christmas, with a 1.44 percent total year-on-year growth - well below the seasonally adjusted long-term average.

ARA Executive Director Russell Zimmerman said these figures were extremely frightening this close to the biggest trading period of the year, and urges the Government to refocus on increasing disposable income.

“With Christmas not too far away, and the ARA Roy Morgan Pre-Christmas Sales Predictions to be released in a couple of weeks, these figures are in all honesty alarming,” Mr Zimmerman said.

“The category that’s been hit hardest in September was Household Goods with a -1.14 percent year-on-year growth.”

Mr Zimmerman said the softness in Sydney house prices are starting to impact consumer spend on household goods with Hardware and Building (-4.22%), Electrical Goods Retailing (-1.12%), and Furniture (2.98%) all showing a big drop in year-on-year growth.

“These figures show an obvious weakness in consumer confidence,” Mr Zimmerman said.

“If Australians aren’t feeling wealthy they will spend less, and this weakness is an issue across the board.”

The only retail category showing a slight increase was Food Retailing (2.85%), however this growth is still nowhere near the growth figures the retail industry received at the start of the year.

All states have again received a drop in year-on-year growth, an undesirable sign for Christmas. Although dismal, New South Wales (2.34%), Tasmania (2.33%), Victoria (2.29%) and South Australia (2.16%) showed the strongest year-on-year growth of the states. While both the Australian Capital Territory (1.17%) and Queensland (0.23%) remained quite low, Western Australia (-1.19%) and the Northern Territory (-1.46%) received negative figures, a worrying outlook for the months ahead.

With the ARA Roy Morgan Pre-Christmas Sales Predictions to be released in two weeks, Mr Zimmerman believes the Federal Government needs to act fast to stimulate the economy.

“There has been a lot of change in the Australian retail environment this year, and with change comes uncertainty, but one thing is for sure, Christmas is coming,” Mr Zimmerman said.

MONTHLY RETAIL GROWTH (August 2017– September 2017 seasonally adjusted) 

Department stores (2.08%), Food retailing (0.56%), Cafes, restaurants and takeaway food services (0.35%), Household goods retailing (-0.43%), Clothing, footwear and personal accessory retailing (-0.73%) and Other retailing (-1.67%).

South Australia (0.65%), Tasmania (0.58%), Queensland (0.26%), New South Wales (0.23%), Australian Capital Territory (0.06%), Victoria (0.02%), Western Australia (-1.30%) and Northern Territory (-1.65%).

Total sales (0.03%).

 

YEAR-ON-YEAR RETAIL GROWTH (September 2016 – September 2017 seasonally adjusted)

Food retailing (2.85%), Other retailing (1.79%), Department stores (1.34%), Cafes, restaurants and takeaway food services (1.05%), Clothing, footwear and personal accessory retailing (0.15%) and Household goods retailing (-1.14%). 

New South Wales (2.34%), Tasmania (2.33%), Victoria (2.29%), South Australia (2.16%), Australian Capital Territory (1.17%), Queensland (0.23%), Western Australia (-1.19%) and Northern Territory (-1.19%).

Total sales (1.44%).

 

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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