According to the latest February retail numbers, there was a 0.3 per cent sales increase (seasonally adjusted), with Victoria (0.7 per cent) and NSW (0.6 per cent) the clear winners.
However, this is largely due to the Swift effect, with both states hosting Taylor Swift’s Eras tour, while other states including Queensland (-0.5 per cent) and Tasmania (-0.4 per cent) marked time or went backwards.
“If you strip out the sales bump from Swifties, underlying growth reached just 0.1 per cent for the month,” says National Retail Association director, Rob Godwin.
“When you factor in price inflation, this clearly shows a sector in need of significant help. We simply can’t rely on a US pop star to ensure our retail economy is reaching its potential.
“These figures show that the retail sector is struggling and can’t simply ‘shake it off’ no matter what kind of spin the ABS puts on the numbers.”
While most retail categories saw a modest increase, household goods slumped into decline again (-2.2 per cent).
“Australians are still cutting back on spending as the lag effect of interest rate rises continues to take hold,” adds Australian Retailers Association CEO, Paul Zahra.
“While food spending remained constant, there has been a shift towards more affordable and value-oriented products in recent months.
“The ongoing cost-of-living pressures and interest rate ramifications are making it a challenging period for those in the discretionary retail sector.
“Any growth that has been achieved is mostly being fuelled by the Australian population increases of 2.5 per cent across the past year. We also understand that significant events like Taylor Swift concerts can go some way to stimulate spending.”
