Retailers knocked by July trade slump
Mid-year sales failed to save the retail sector from the brunt of cost-of-living pressures facing consumers, Australian Bureau of Statistics data released today reveals.
ABS retail sales figures show retail turnover fell 0.8% in June.
National Retail Association CEO Greg Griffith said the lack of impact from mid-year year sales shows how far consumer confidence has fallen.
“Department stores were hit hardest, experiencing 0.5% decline sales, followed by clothing, footwear and personal accessory retailing which fell 2.2%,” Mr Griffith said.
“Food retailing was the only industry to experience an increase in sales, by 0.1%, but this can be attributed to rising food prices.
“Consumers are only opening their wallets for non-discretionary spending, if not for special occasions.
“Big retailers have found consumer loyalty with their own branded products because of how cheap and familiar they. We encourage other retailers to adopt similar sales tactics to ride out the economic storm,” he said.
Mr Griffith suggested the Government’s recent move to overhaul casual employment giving employees more access to employee benefits and permanent roles would need to be mindful of the impacts on small business.
“Casual employment is essential for businesses who are already operating at thin margins. It’s not something they will want to lose while consumers are tightening their spending,” he said.
“Last month the Reserve Bank paused interest rates but next week they will factor in the 5.75% wage increase that kicked-in on July 1, which could mean another rate hike on the horizon.
“Victoria experienced a 1.3% fall in retail trade followed closely by NSW, which fell 1.1% Retail sales in Queensland fell by 0.7%.
“Small retailers are hit hardest and need regulators to keep them in mind when making policy decisions.”
