Retail turnover slightly up in June as EOFY sales boost spending

Australia’s retail turnover slightly increased in June as end-of-financial-year (EOFY) sales boosted spending.

Australian Bureau of Statistics (ABS) data showed that retail spending totalled $36.2 billion during the month, up 2.9 per cent year on year.

The ‘other’ category, which includes cosmetics, sports and recreational goods, saw the strongest growth of 6.3 per cent, with sales hitting $5.68 billion.

Department stores came in second as its sales grew 4.2 per cent to $ 1.89 billion, followed by food, which increased 3.1 per cent to $14.43 billion.

Clothing, footwear, and accessories sales jumped 2.2 per cent.

Household goods had the least growth of 1.1 per cent to $5.82 billion, the same growth rate for cafes, restaurants, and takeaway, with sales reaching $ 5.39 billion.

“Retailers told us that consumers continued to target sales events and look for the best deals before buying big-ticket items like furniture, bedding, TVs and laptops,” said Ben Dorber, ABS head of retail statistics.

Despite the uptick, ARA CEO Paul Zahra emphasised that retailers are still facing tough times ahead.

“There is no doubt shoppers are still feeling the pinch and are therefore being stricter with their spending habits. The RBA decisions for the remainder of this year will have a critical impact on consumer spending and the viability of vulnerable retailers and in particular small businesses,” said Zahra.

“The ARA continues to call for targeted government support for vulnerable businesses. Retailers are also battling a retail crime wave, ongoing labour shortages and continued supply chain pressures alongside the most intense changes to our workplace relations system in more than a decade.”

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