Fashion and department stores are the only retail sectors to see spending growth in April 2023, data from the Australian Bureau of Statistics (ABS) revealed.
Clothing, footwear, and personal accessory retailing spending grew by 1.9 per cent to $57.1 million, while department store sales lifted by 1.5 per cent to $29.2 million.
This is despite a drop for both sectors in March when fashion sales dropped by 1.0 per cent and department stores dropped by 0.2 per cent.
Overall turnover in Australia remained unchanged for the month of April at $35.2 billion, following a 0.4 per cent rise in March 2023 and a 0.2 per cent rise in February.
ABS head of retail statistics Ben Dorber said the slowdown in overall retail spending seen since the start of the year continued in April.
“Retail turnover has plateaued over the last six months as consumers spent less on discretionary goods in response to cost-of-living pressures and rising interest rates,” Dorber said.
“Spending was again soft in April but was boosted by increased spending on winter clothing in response to cooler and wetter than average weather across the country.”
Despite the plateau on overall retail spending in April compared to March, it was up 4.2 per cent year-on-year.
Department stores and fashion recorded lifts year-on-year, up 6.5 per cent and 4.9 per cent respectively, with cafes, restaurants and takeaway leading at 13.2 per cent.
Australian Retailers Association (ARA) CEO Paul Zahra said the trending slowdown of retail sales is expected to continue in the coming months.
“While the numbers are still positive – the slowdown in retail spending is certainly already in effect and when you factor in price increases these results are having an impact on margins," Zahra said.
“Year-on-year spending on household goods continues to decline, but this also reflects the bumper trading in this category during the pandemic years.
“It’s good to see restaurants and cafes continue to do well. However, we are mindful that price increases are also having an impact and will be putting pressure on margins."
There were mixed results across the states and territories with four falls and three rises, while the Northern Territory remained unchanged.
Tasmania (-1.5 per cent) recorded the largest drop, followed by falls in New South Wales, Victoria, and the Australian Capital Territory.
The largest rise was recorded in Western Australia (+1.0 per cent) followed by smaller rises in South Australia and Queensland.
“Turnover is at a record level in South Australia following three straight rises of 0.6 per cent and boosted by the inaugural AFL Gather Round and LIV Golf Adelaide tournament this month,” Dorber said.
Across other retail categories, household goods retailing recorded its third straight monthly fall in turnover in April, down 1.0 per cent, while ‘other retailing’ remained unchanged.
Food-related spending was down this month, with falls in cafes, restaurants and takeaway food services (-0.2 per cent) and food retailing (-0.1 per cent). Food retailing recorded its first fall following 13 straight monthly rises.
“The modest fall in food-related spending comes after a period of consistent growth driven largely by high food inflation,” Dorber said.
“Spending at cafes, restaurants and takeaway food services remains at a particularly high level despite the fall in April, with turnover up 13.3 per cent compared to this time last year.”
"Spending has also been boosted by the return of large-scale sporting and cultural events.”