Apparel and footwear sales within Vicinity Centres’ retail portfolio have fallen by 1.5 per cent in the first half of FY24, with homewares the only other category in negative growth at 5 per cent.
Jewellery sales came third at positive 1.4 per cent.
According to Vicinity Centres, lower apparel and footwear, homewares and jewellery sales reflect the cycling of strong growth post-pandemic.
Apparel and footwear sales were notably down in the September quarter last year, hitting negative 0.8 per cent, which then softened to negative 0.2 per cent in the December quarter.
Overall, Vicinity Centres’ total portfolio retail sales lifted by 1.5 per cent, mostly driven by food retail, as well as sporting goods, cosmetics, and retail services.
Month on month retail sales growth moderated over the first half, reflecting the softening of consumer demand amid cost-of-living pressures, together with the cycling of particularly strong trading in the prior comparable period.
Vicinity also reported a strong patronage across the portfolio during the Black Friday and Boxing Day sales events, showing that shoppers are willing to spend, but are more discerning and value-conscious.
October was the first month where portfolio sales growth was negative since the recovery from the pandemic, however combined November and December retail sales were up 1.3 per cent relative to a strong prior year, highlighting that shoppers are viewing Black Friday as a key part of the broader Christmas trading period.
The brand performance was mixed, with the flagship luxury houses continuing to outperform. Small and medium enterprise (SME) retailers recorded a total sales growth of 6.1 per cent in the first half, as shoppers continue to show a strong preference for SME-oriented categories including services, food and dining, and other experiential retail.
Same-store luxury sales were up 0.7 per cent, also rolling off exceptional growth rates in the prior year.
However, department store sales offset the growth overall with a negative 4.6 per cent growth.
“There is no doubt that elevated living costs for Australian households are now impacting consumption, particularly across the discretionary goods categories,” Vicinity Centres CEO and managing director Peter Huddle said.
“That said, with international tourism nearing pre-pandemic levels, migration at historical highs and with a tight employment market, we continue to observe resilience. This resilience is supporting retailer confidence which continues to be reflected in our operating metrics.
“The performance of the retail sector in 2024 ultimately depends on the level of inflation, when interest rates will peak and the extent to which employment markets remain tight.”
Vicinity's retail portfolio consists of 60 shopping complexes, including several outlet centres.