NATIONAL: Department store sales were among the hardest hit during the month of April, according to freshly released retail figures from the Australian Bureau of Statistics.
Overall retail sales clocked in a modest 0.6 per cent growth in April, with the department store sector falling by 2.4 per cent and clothing and footwear sales up by just 0.3 per cent.
Cafes, restaurants and takeway food services also slumped, while household goods recorded a significant 2.6 per cent growth.
Australian Retailers Association executive Russell Zimmerman believed consumers were starting to 'cocoon' in their homes in the wake of interest rate hikes.
"April 2010 sales are only up 1.8 per cent compared to the same time last year," he said. "This is appalling growth and well below the current rate of inflation."
South Australia recorded the largest rise in sales at 2.9 per cent, followed by Victoria (1.5 per cent) and Queensland (1.2 per cent). New South Wales, Western Australia and the Australian Capital Territory all recorded sales declines.
UPDATE: The Reserve Bank has put interest rates on hold for June, following three rises in as many months. Retail industry bodies have welcomed the decision to keep the key cash rate steady at 4.5 per cent.