Australian retail turnover rose 0.9 per cent in September 2023, according to seasonally adjusted figures released by the Australian Bureau of Statistics (ABS).
This follows rises of 0.3 per cent in August 2023 and 0.6 per cent in July 2023, revised up from previously published estimates.
Most industries recorded growth this month, with rises in all non-food related industries.
Department stores (+1.7 per cent) recorded the largest rise of the non-food industries, followed by household goods retailing (+1.5 per cent), other retailing (+1.3 per cent), and clothing, footwear and personal accessory retailing (+0.3 per cent).
ABS head of retail statistics Ben Dorber said the strong rise in September came from a diverse range of factors across the industry.
“The warmer-than-usual start to spring lifted turnover at departments stores, household goods and clothing retailers, with more spending on hardware, gardening, and clothing items. Also adding a boost to turnover in household goods retailing was the release of a new iPhone model and the introduction of the Climate Smart Energy Savers Rebate program in Queensland.
“While the rise in September was the largest since January, subdued spending for most of 2023 means that underlying growth in retail turnover remains historically low. retail turnover in trend terms is up only 1.5 per cent compared to September 2022 - the smallest trend growth over 12 months in the history of the series.”
Retail turnover growth was up in all states and territories. Queensland (+0.5 per cent) was temporarily boosted by the popular response to the Climate Smart Energy Savers Rebate program for households to upgrade appliances such as washing machines, dishwashers, refrigerators, and dryers.
The latest Consumer Price Index showed that inflation rose again this quarter, however growth continued to be lower than that seen throughout 2022.
“To see the full effect of changing consumer prices on recent retail turnover growth, it will be important to look at quarterly retail sales volumes which we release next week,” Dorber said.
According to figures released by the ABS, shoppers spent more than $35.8 billion across the country in September.
Australian Retailers Association (ARA) CEO Paul Zahra said the September results were somewhat more stable than previous months but reiterated that it will still be a nervous wait for retailers heading into the all-important Christmas trading period.
“Several discretionary categories have recovered from decline on the previous month, mostly driven by more promotional discounting. However, this does give retailers a cautious bit of optimism heading into these vital trading months,” Mr Zahra said.
“Food and takeaway again led the spending growth, and this is consistent with what we’ve seen all year – shoppers are prioritising the essentials in a cost-of-living crisis.
“The Reserve Bank of Australia’s monetary decision on Melbourne Cup Day will be pivotal to the success of retailers during the most important trading time of the year – and we urge the RBA to hold interest rates considering this.
“Discretionary retailers make up to two-thirds of their profits during the all-important Christmas period, so poor performance can be make-or-break particularly for small business.
“Whist much has been said about the cost-of-living crisis, retailers are also experiencing a cost of doing business crisis and will be concentrating on offering the best service and value for budget conscious shoppers as they lead into the all-important Christmas trading period.”
