Fashion trade falters again

By Assia Benmedjdoub

26 Aug 2008

NATIONAL: Spending in the clothing and soft goods sector has suffered a significant blow after a "few" months of relative stability, a retail trade report has found. The latest Australian Bureau of Statistics Retail Trade report showed the sector had recorded the worst month-on-month result of all major retail categories, with sales falling by 8.8 per cent between May and June 2008.

Clothing and total department store categories also experienced a decline in the month of June with a decrease in sales of 7.5 per cent and 6 per cent respectively.

A year-on-year analysis found a substantial decrease in clothing and soft goods sales in Queensland, which fell 26.8 per cent between June 2007 and June 2008.

Analysts said the results were to be expected considering current economic conditions, where household expenditure was constricted and sectors selling non-staple goods tended to suffer.

Meanwhile it was hoped fashion events such as August's Rosemount Sydney Fashion Festival and upcoming Melbourne Spring Fashion Week - scheduled for the first week of September - would help boost consumer spending on fashion.