Shoppers were keen to scoop a bargain in the January sales as the latest retail trade report proves.
Figures released from the Australian Bureau of Statistics (ABS) show an increase in turnover in January of 0.3 per cent, seasonally adjusted. This follows on from a fall of 0.1 per cent in December.
The rise was driven by cafes, restaurants and catering services and the clothing, footwear and personal accessory retailing sector saw a seasonally adjusted rise of 0.1 per cent.
In current prices, the trend estimate for department stores rose 0.1 per cent in January and the seasonally adjusted estimate fell 0.2 per cent.
The Australian Retailers Association (ARA) executive director, Russell Zimmerman, said while trade figures meant some good news for the retail sector, the boost was a reflection of the current consumer mindset which is to wait for bargains before pouncing to spend.
“The last time the clothing and footwear category showed any year on year growth was last April, and soft sales over Christmas showed the festive season wasn’t even enough of an enticer for the reticent consumer,” Zimmerman said. “While retailers in the clothing and footwear category have seen relief, it’s still a sad state of affairs when the only way to entice consumers is to discount heavily and stir up a shopping frenzy.”
Zimmerman said retailers need 'lasting relief' rather than a short term reprieve which was brought about by 'sales hype'.
In December a monthly boost in clothing and footwear, of 3.5 per cent, was welcomed by businesses who had been suffering all year, but this was mainly due to retailers discounting heavily to get shoppers through the door.
The ARA is also calling for a further breakdown within the ABS's ‘other retailing’ category for more clarity.
“Once again, we have seen a yearly surge in ‘other retailing’ (4.3 per cent), a category which captures vastly different sections of the industry from pure play online through to book sales and outdoor retailing,” Zimmerman said.