NATIONAL: A decline in November 2010 retail sales was a key cause of heavy pre-Christmas discounting, according to the Australian Retailers Association (ARA).
ARA executive director Russell Zimmerman reported that November 2010 clothing, footwear and personal accessory sales were down 3.7 per cent compared to November 2009. Department store sales were down 2.4 per cent.
“After the interest rate rise in November, clothing, footwear and department store retail sales were actually in decline from the same time last year," he said. "This is disappointing news for retailers who would have been expecting some early Christmas shoppers in late November."
Zimmerman said the November results followed 18 months of sluggish trade.
“The Australian retail sector is the
country’s largest employer and it’s still suffering in the wake
of the GFC while other sectors have recovered. Retailers are dealing
with a new type of consumer who is frugal and holding onto spare cash
for savings or to pay off debt and a steady hand on interest rates is
needed for the moment to ensure ongoing retail profitability in
2011,” he said.
The ARA reported it will confirm
predictions of $39.9 billion in Christmas trade after December ABS
trade figures are released next month.