Jewellery and apparel sales are leading the post-pandmic purchase charge, according to the latest Mastercard SpendingPulse.
Jewellery sales were up 107% in August compared to a year ago, with apparel coming up 83%.
Overall retail trade increased 25.1% in August compared to the same month last year, while sales were also up 27.4% compared to pre-pandemic levels.
The data, which measures in-store and online retail sales across all forms of payment, showed most retail categories recorded significant year on year sales growth.
Australian Retailers Association CEO Paul Zahra commented that retail sales have strong momentum for now but cautioned there could be a slowdown in spending as we head into 2023.
“In August last year, our two largest states were in lockdown, so it’s not surprising to see discretionary retail categories record such significant growth compared to 12 months ago. What’s pleasing though is that sales are also up compared to pre-pandemic levels across most retail categories,” Zahra said.
“While consumer spending is strong for now, the concern is that we haven’t seen the full impact of the interest rate hikes hit household budgets. According to the government, inflation is also yet to reach its forecast peak, so we could see a softening of sales as we head into 2023.
“While the retail sector is performing well overall from a sales perspective, the results remain uneven with small businesses more acutely challenged by inflationary impacts and rising costs associated with fuel, energy, supply chains and rent. The government’s fuel excise cut is also about to come to an end, adding further pressure to businesses and consumers.
“It’s incredible to see retail sales perform so well in the face of cost-of-living pressures, however the coming months could prove to be more challenging with household savings starting to erode and mortgage holders being squeezed even tighter,” Zahra said.