Retail sales for May 2016 saw a steady year on year increase of 3.4 percent, according to Australian Bureau of Statistics data.
The Australian Retailers Association (ARA) has identifed Tasmania, NSW and Victoria as the key drivers of this growth.
Total retail sales for May 2016 were $25 billion.
ARA Executive Director Russell Zimmerman attributed the rise to sales activity.
He said retailers offered discounts in order to move winter stock as a result of late warm weather.
“Most Australian states witnessed a very late start to winter this year, and the extra discounts on offer, combined with the beginning of mid-year sales have been responsible for the bulk of May’s growth,” he said.
“The blast of cold in the last week of May also served to drive retail spending, sending those who had previously held off on purchases of winter goods and clothing scurrying into stores.”
Tasmania saw the highest rate of growth, at 5.2 percent, followed by Victoria at 4.9 percent and NSW, 4.8.
Category-wise, other retailing showed the top rate of growth at 5.9 percent, buoyed by strong sales of recreational goods and pharmaceuticals, cosmetics and toiletries.
The other standout category of the month was department sales, clocking a four percent increase on the previous year.
Supermarket sales remained soft at two percent, as a result of intense competitions between the majors and deep discounts lead by Aldi.
Looking ahead, Zimmerman said the outcome of the Federal election would likely have an impact on retail confidence, should a minority Government occur.
“There is no doubt that during the minority Government of 2010 to 2013 we saw very soft retail growth.
“Whatever the outcome should be, the ARA believes that the winner and those that underpin and support the Government must ensure a strong focus on economic growth.”
YEAR ON YEAR RETAIL GROWTH (May 2015 to May 2016 seasonally adjusted)
By category:
Food, 2.4 percent; household goods, three percent; clothing, footwear and personal accessories, 3.4 percent; department stores, four percent; other retailing, 5.9 percent; cafés, restaurants and takeaway foods, 3.9 percent.
By state:
NSW, 4.8 percent; Victoria, 4.9 percent; Queensland, 0.4 percent; South Australia, 3.8 percent; Western Australia, 0.7 percent; Tasmania, 5.2 percent; Northern Territory, 1.2 percent; and Australian Capital Territory, 4.7 percent.