Victoria's recent lockdown forced retail turnover in the state down 1.5% in the month of May, new preliminary figures from the Australian Bureau of Statistics indicate.
Victoria saw falls across all industries except for food retailing (up 4%), where spending increased in the lead up to the lockdown in the last week of May.
However, the lockdown's impact was contained to Victoria, with Queensland and WA offsetting Victoria's fall, each seeing a 1.5% increase in May.
Overall, the figures showed retail turnover rose 0.1% in May on a month-on-month basis.
Compared to May 2020, turnover rose 7.4% in May 21.
ABS director of quarterly economy wide surveys Ben James said the figures paint a mixed picture for retail in May.
"There were mixed results across the industries and states and territories, with COVID-19 restrictions in Victoria impacting the May result.
"Victoria fell 1.5% as the state entered its fourth lockdown on May 28 with trade restricted for physical stores," he said.
Nationally, by industry, clothing, footwear and personal accessory retailing fell 1.5%, while household goods declined 1% in May.
Australian Retailers Association CEO Paul Zahra added that while it is positive to see the industry remaining resilient, the recovery is still uneven between different sectors of retail.
"It’s pleasing to see retail sales overall on a positive trajectory, albeit at a slower pace.
"However, what the figures don’t show us is the uneven recovery for many small businesses, including those within CBDs and travel retail.
"The preliminary figures released today show differing results across the states as COVID continues to impact business performance depending on where they’re located.
"Every lockdown comes at a significant cost, and there is now no safety net for retailers.
"Consumer confidence faded in response to the most recent lockdown in Victoria and there are still restrictions in place limiting businesses from trading at their full potential – in particular cafes and hospitality businesses," he said.
Zahra added that retailers in Sydney are also now keenly watching the development of the recent outbreak, which now sits at 11 active cases.
"Sydney businesses are also on edge given the new cases that have emerged over the past week
"We know that whenever new COVID cases pop up in the community, foot traffic through retail stores tumble as people limit their movements and work from home if they can.
"The ongoing COVID impacts highlight just how critical the vaccine rollout is to ensuring businesses can trade with confidence," he said.