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Experian FootFall has released global findings for the retail sector in Q2 revealing positive results for Australia.

While the overall global year-on-year performance is up 0.6 per cent, Australia indicates a surge of 3.5 per cent.

It falls just behind India at 8.9 per cent and Japan at 4.9 per cent.

European countries recorded poor footfall results, declining 1.3 per cent with only Switzerland, Spain and the Republic of Ireland showing positive growth.

Despite a rise in Australia's footfall figures in Q2, FootFall regional director Australia Adam Iaokim warns that these figures may not have translated into revenue.

“The retail sector was slightly disappointed by May’s sales figures, which saw the region fall short of its 0.5% growth target.

“On the whole, however, the retail environment remains buoyant – with monthly retail sales increasing by 0.3% in April and a further 0.2% in May.

“Activity may well be stimulated by greater market competition over the coming months; German discount supermarket Aldi is planning to step up its presence in the region, for example, shipping fresh fruit and vegetables from Australian farms for the first time.”

Iaokim also cites an increase in consumer confidence following this year's federal budget as a key reason for the spike in retail spending.

“For the second successive quarter, Australian retail footfall increased Year-on-Year on the
back of consumer confidence figures, which reached their highest level in 18 months in the
final week of June.

“The +3.5% increase can be partially attributed to improving labour market conditions and a favourable response to the May federal budget announcement.

“With mid-season and end of financial year sales in full swing, retailers will be hoping the upward trend continues into July/August and translates into an improvement in retail sales.”

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