After one of the worst trading periods in April for retail in many years, May is offering a glimmer of hope with retail turnover rising 16.3 per cent in May 2020.
According to the Australian Bureau of Statistics (ABS), this is the largest seasonally adjusted rise ever published in the 38 years of the Retail Trade survey, following the largest ever seasonally adjusted fall of 17.7 per cent in April 2020. Turnover rose 5.3 per cent when compared to May 2019.
These preliminary figures show rises in every industry including household goods retailing, where retailers reported increases in spending relating to homes including furniture, home entertainment, home offices and home improvement.
However, National Retail Association (NRA) CEO Dominique Lamb says that a sizeable rise in sales was guaranteed to happen as shops began to reopen and that the sector is still struggling.
“It’s certainly good news to see retail sales rebound strongly in May and hopefully it’s a sign that we are recovering from the economic sledgehammer of Covid-19,” she says.
“But we do need to remember the broader context. These figures were recorded following the worst month on record in April 2020 and following the easing of business restrictions, so an uptick was to be expected.
“The fact is many retailers are still struggling to cope following the economic impact of Covid-19 and Australia is entering its first recession since 1991. Retail is still far from out of the woods, but hopefully the ABS results demonstrate that we are on the road to recovery.
“The JobKeeper and JobSeeker programs have also helped keep ticking things along, but these are only temporary measures which won’t maintain strong consumer confidence…”
The ABS figures come as American Express released its Small Business Recovery research following the launch of its eighth annual Shop Small initiative. The research reveals that 52 per cent of Australian small business owners fear for their long-term survival if trade doesn’t pick up quickly enough.
The research also shows that only 33 per cent of shoppers felt comfortable returning to bricks-and-mortar shops and more than one-fifth (22 per cent) will only return to physical stores when zero cases are recorded in their respective states. Another 15 per cent says they would only return to the shops when no cases exist nation-wide.
“The Small Business Recovery research commissioned by American Express reveals the current anxiety within the small business community. Many shoppers are still very wary about returning to bricks-and-mortar shops,” she adds.
Kate Carnell, Australian Small Business and Family Enterprise Ombudsman, recognises that there has never been a tougher time to be in business.
“While it’s encouraging to see so many small businesses confident they can survive this crisis, they will face enormous challenges over the coming months as they work to get back on their feet,” Carnell says.
“What small businesses need right now is our support. The best way to do that is by visiting your local small businesses or shopping online for local products and services. Every dollar spent not only goes to that small business, but to the community as well.”
