Retail in Asia

In Markets

Retail sales party in Australia is over, says Deloitte

After the best Christmas since the global financial crisis, retailers in Australia have been warned to prepare for at least two years of subdued sales growth as declining per capita incomes, softening house prices and weak commodity prices coincide with increased competition from global players.

Following a year of solid retail sales growth, underpinned by lower interest rates and rising house prices, real retail sales growth is expected to slow significantly in fiscal 2016 and 2017, according to Deloitte Access Economics’ quarterly retail forecasts.

Deloitte Access Economics now expects inflation-adjusted retail sales to rise by 2.4 percent in 2015-16 and 2.3 percent in fiscal 2017, compared with 3.3 percent in fiscal 2015 and 3.1 percent in 2014.