Apparel led the way for year-on-year retail sales growth in December 2022, up 6.7%, followed closely by groceries (up 6.6%), with overall retail sales up 1.7%. This is according to the latest Mastercard SpendingPulse™, which measures in-store and online retail sales across all forms of payment.
Lodging also saw gains for December year-on-year sales of 4.1%, followed by electronics (up 3.5%), with home furnishings and fuel and convenience down 2.4% and 4.1% respectively.
It comes after Christmas came after a lucrative Black Friday trade in November, with a range of sales and deals encouraging shoppers to buy ahead.
Australian Retailers Association CEO Paul Zahra welcomed the results.
“Achieving spending growth in December, during the peak of Australia’s shopping activity, is encouraging for retailers – especially in a period of economic uncertainty,” Zahra said.
“Home Furnishings and Fuel and Convenience were down on the previous year, due to a higher sales base last year, as these sectors had record growth last year due to the lockdowns ending.
“The growth in apparel sales is particularly outstanding due to the unseasonal cool Summer. Gross margins, however, may have been impacted as retailers worked to clear current inventory.”
Zahra said the results are testament to the resilience of the retail industry and has set a good foundation for an uncertain 2023.
“We’re aware that it will be a challenging environment for businesses, particularly small businesses on tighter margins, as they continue to battle rising operating costs associated with fuel, energy, labour, supply chains and rent.”
Zahra flagged that inflation has also played a factor in the increased sales numbers.