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Department stores experienced a significant jump in March, with the Australian Bureau of Statistics (ABS) recording an 8.5% lift for the sector in the month.

This $141.7 million increase follows a 2.2% lift ($36.6 million) for the department store sector in February. 

Meanwhile, clothing, footwear and personal accessory retailing also saw a rise in March, lifting 5.4% ($128.6 million). 

By industry subcategory, clothing retailing rose 5.6% ($89.1 million), while footwear and personal accessory retailing rose 5.0% ($39.5 million) in March. 

Overall, the ABS recorded a 1.3% increase in retail turnover for March. 

Compared to 2020, March 2021 rose 2.2%. 

Total online sales for the month rose 2%, following a fall of 2.1% in February and a rise of 1.9% in January 2021.  

Despite the rise in turnover, retail sales volumes fell 0.5% in the March quarter - following a 2.4% rise in the December quarter 2020.

ABS director of quarterly economy wide surveys Ben James said 

"The quarterly volume fall was driven by households' spending patterns gradually returning to those seen before COVID-19.

"Food retailing (-2.7%) led the falls while household goods also fell (-1.6%).

"The falls were partially offset by a rise in cafes, restaurants and takeaways (5.8%), as eating out increased, while functions and events continued to return," he said. 

In volume terms, the clothing, footwear and accessories retailing sector fell 0.7%, while department stores rose 0.2%. 

National Retail Association CEO Dominique Lamb said the March figures demonstrate that it is still a volatile time for retailers.

"The 12 months to March 2021 has undoubtedly been the most turbulent period retail has experienced in living memory. 

"Panic-buying, lockdowns, supply chain disruptions and myriad other challenges has at times seen retail sales go wildly from one extreme to the other.

"But we’re now starting to see shoppers slowly return to their pre-pandemic shopping habits.

"Lockdowns continue to have a material effect on retail sales.

"Both Victoria and Western Australia surged in March following February lockdowns in both states, while the three-day Brisbane lockdown plunged Queensland into negative turnover for the month," she said. 

Meanwhile, the sector is also preparing for the Federal Government's Budget announcement this evening.

Ahead of tonight's budget, Lamb added that the retail sector hopes to see measures that keep consumer spending flowing. 

"Discretionary spending reached unprecedented levels at the end of 2020.

"An inability to travel overseas, coupled with stimulus measures, saw shoppers stampede retail outlets during the traditionally busy Christmas period. 

"While it was always expected that spending levels would begin to taper off, we need to ensure consumer spending does not fall off a cliff and we hope to see measures in the Budget that address this.

"Extending the tax offset for low and middle income earners for a further 12 months will help to encourage consumer spending.

"While we also hope to see initiatives that help small business and encourage economic activity.

"Maintaining a strong level of demand will be crucial to ensuring a quick economic recovery and help to safeguard jobs in Australia’s second-largest workforce," she said. 

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