The household goods sector is still going strong according to the latest figures released by the Australian Bureau of Statistics.
The sector saw a year-on-year increase with an overall growth of 4.62 per cent, while department stores recorded year-on-year growth for the first time this year with a 1.28 per cent rise.
According to Australian Retailers Association (ARA) executive director Russell Zimmerman the July retail trade figures continue to show stable growth, a positive sign going into the warmer months.
“Year-on-year growth remains strong for the retail industry with household goods, especially hardware, driving the figures,” he says.
“It is encouraging to see the hardware sector continuing to show robust growth year-on-year, with a 5.02 per cent increase. With the end of deep discounting events after the closure of Masters, the continued growth in the hardware sector as sales begin to normalise is a good sign for the retail industry as a whole.”
The positive numbers for department stores are largely attributed to early spring fashion sales.
“New season fashions have brought customers back into the department stores, and the increase in sales bodes well as we move into summer.”
All states recorded growth, which is a great sign for the retail industry, with Victoria and New South Wales leading the pack with 5.63 and 4.18 per cent growth year-on-year respectively. They were followed by the ACT (3.95 per cent), Tasmania (3.53 per cent) and South Australia (2.99 per cent), while the Northern Territory, Queensland and Western Australia showed gradual increases.
“It is great to see Victoria showing a significant increase in sales year-on-year, and Western Australia beginning to turn around with a change in government bringing some positivity to the west,” Zimmerman explains.
National Retail Association (NRA) CEO Dominique Lamb says the figures show that the industry is in a steady and stable shape.
“The trend estimate rise of 0.3 per cent for July shows that retail is in a stable state at the moment, but we are expecting that to pick up as we head towards Christmas,” she says.
Lamb says the Reserve Bank of Australia (RBA)’s decision to keep the interest rates at 1.5 per cent should give retail a much needed boost before the silly season starts.
“The RBA’s decision to keep interest rates on hold at a record low 1.5 per cent should give retail the kick along it needs as we approach Christmas.
“From retail’s perspective, it is important that consumer confidence is as high as possible and low interest rates certainly help to foster that,” Lamb adds.
By Marion Gerritsen
