The Australian Bureau of Statistics (ABS) has revealed the holiday trading period has not lived up to expectations for fashion retailers, according to December retail trade figures.
The ABS report shows retail spending over the Christmas period declined by a seasonally adjusted 0.2 per cent for the month of December, contradicting what economists had expected, a 0.3 per cent rise.
This is consistent with a pattern of decline in retail spending, following a fall if 0.2 per cent in November 2012 and a fall of 0.1 per cent in October 2012.
The December figures show that clothing, footwear and personal accessories retailing suffered the most in the December quarter, down 1.5 per cent.
Department store turnover, however, reported a 1.7 per cent rise for the quarter.
The news has also given Australian retailers more reason to demand interest rate cuts and call for an immediate reduction in the $1000 GST-free threshold for purchases made overseas, according to ARA executive directer Russell Zimmerman.
Commenting on the results, Zimmerman said figures indicate that household budgets were stretched in the lead up to Christmas.
He added that the decision by the Reserve Bank of Australia (RBA) earlier this week to leave the cash rate unchanged was disappointing for retailers.
“Retailers were hoping the December interest rate cut might have saved the festive season, but the rate wasn't passed on and other cost pressures had accumulated – especially from the second half of last year with the introduction of the carbon tax,” Zimmerman said.
As the key body between government and the 120,000 retail enterprises in Australia, the ARA say they will advocate for better outcomes.
“The ARA is calling on the current and alternate Federal Government to implement key reforms crucial to viability and productivity for the $243 billion retail industry, including tax reforms, workplace reforms, a majority government, infrastructure, training and a return to budget surplus while reducing the pressure on business and consumers' pockets,” Zimmerman said.