Australian retail sales remained subdued in April 2024, with a modest increase of 1.3 per cent compared to the same month last year.
National Retail Association interim CEO, Lindsay Carroll, says April retail trade had gone backwards in real terms, given that the increase to sales can be tied to inflated prices.
“The 0.7 and 0.5 per cent fall in clothing, footwear and personal accessory retailing, and food retailing respectively, reveal dire spending constraints on households,” she explains.
“ABS data also shows that consumers are waiting for cheaper deals, a move many retailers can’t afford. This has led to reduced inventory, which creates a knock-on effect for suppliers.”
Indeed, while household goods recorded a fifth consecutive month of sales decline (down 1.3 per cent), household items and décor is one of the more popular categories in the upcoming EOFY bargain sales.
“Household goods have suffered significantly,” says Australian Retailers Association (ARA) CEO, Paul Zahra.
“The category recorded once-off sales growth in November during the Black Friday sales, but has otherwise remained in decline for more than 12 months.
“The mid-year sales have already commenced and present a fantastic opportunity for bargain hunters to score great deals, as retailers reduce prices on a wide selection of clothes, shoes, accessories, homewares, furniture and electronics.”
Research from the ARA and Roy Morgan found more than a quarter of Australians (27 per cent or 6.2 million) will participate in the sales—up one per cent or 400,000 more shoppers than last year.
Zahra adds the mid-year/EOFY sales are especially important for retailers this year, given the slowdown in discretionary spend.
“These sales will likely represent one of the last significant opportunities for retailers to stimulate sales, given the current, protracted consumer spending downturn.
“Household budgets have been under significant strain and the mid-year/EOFY sales are a great opportunity for shoppers to get great value for money.”
