Retail in Asia

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Australian retailers see sustainable spending growth

The Australian National Retailers’ Association (ANRA) sees sustainable retail spending in the country, despite the cautious consumer sentiment on spending.

Citing retail figures from the Australian Bureau of Statistics (ABS) showing an increase of 0.4 percent in spending over October compared to September and October retail turnover rising to 5.7 percent, ANRA CEO Anna McPhee said actions speak louder than words when it comes to confidence.

“With mostly positive month on month growth, the pattern of broad spending across the categories and state and territories indicates retail turnover is likely to finish the year in a good position compared to previous years," she said in a statement published in the ANRA website. “The best performing category for the month, department stores, rose 2 percent and has now recorded two months of consecutive gains – the best in more than a year. Clothing, footwear and accessories rose 1.1 percent and other retailing rose 0.2 percent.

Data also shows that South Australia has been the quiet achiever in recent months. the state recorded the strongest growth rate, up 1.2 percent, which is largely attributed to increases in clothing (up 7 percent), furniture and homewares (up 4.2 percent) and pharmaceuticals and cosmetics (up 3.3 percent).

“Today’s figures will help to drive the sector towards the long-term average annual growth rate of 6 percent for the first time in five years. This consistent and incremental growth will mean the sector will contribute a little more than four percent of GDP this year,” said Ms McPhee.