In positive news for homewares retailers, the household goods category had the highest growth figures year-on-year this April, with the Australian Bureau of Statistics (ABS) reporting 5.8 per cent growth.
According to the Australian Retailers Association (ARA), this high growth is a reflection of the strength of the housing market and the resulting effect on consumer confidence.
However, the ARA says there are challenges ahead for the retail sector, with overall growth slow.
National retail spending saw a 3.6 per cent growth, while clothing and footwear maintained a growth of 4.76 per cent due to heavy discounting, which means volumes are up at the expense of margins. The ARA says new players and competition entering the market has also had a significant effect on growth, causing further discounting.
“The figures reported by the ABS also highlight a number of trends in regards to state specific retail trade,” says Russell Zimmerman, ARA executive director.
The large service sector based states (Victoria and NSW) are growing strongly, while the traditional mining states (QLD and WA) are experiencing low growth as they go through a period of structural adjustment.
In other good news, Tasmania had a bumper result, with an impressive growth figure of 5.85 per cent. This appears to be off the back of a strong economy and healthy tourism industry.
By Ruth Cooper
