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Retail hope brightens with positive sales figures
[Tue 06/12/2011 10:29:05]
Retail trade figures released by the Australian Bureau of Statistics (ABS) have helped inject some optimism into the sector during the Christmas spending period with a 0.2 per cent rise in October.
The solid result comes after a 0.4 per cent jump in September and a 0.3 per cent spike in August.
It was another positive month for household goods retailing which rose 0.2 per cent. Turnover was also strong in food retailing, clothing, footwear and personal accessory retailing, and cafes, restaurants and takeaway food.
However, it was a disappointing month for department stores, which dipped by 0.7 per cent and other retailing which fell 0.4 per cent.
Australian Retailers Association (ARA) executive director Russell Zimmerman says it’s good news but an interest rate cut this week would give consumers an extra incentive to spend.
“It was great to see a monthly boost for fashion retailers due to people spending for the spring racing carnival and other spring events,” he says. “However, the monthly boost doesn’t put clothing retailers in the clear as they struggle with sales still 2.2 per cent below last year. Department stores sales are also down at 3.3 per cent below last October.
“Many categories are in decline from last year and overall growth is being boosted by food retailing and cafes, restaurants and takeaways as well as being still well below the rate of inflation. The growth in household goods, evidence of consumers staying at home rather than spending, is also below inflation.
“We can say with confidence today’s result will lift our Christmas expectations slightly. However, a December interest rate cut is still needed to boost spending confidence in the lead up to Christmas and ensure some Christmas cheer for retailers.
“We know that 54 per cent of retailers are already going down the path of putting goods on sale before Christmas in order to entice customers into the store and 65 per cent of retailers expect sales to be ‘not as high as last year’.
“We also know 65 per cent of retailers agree that a December interest rate cut will boost sales, with 70 per cent citing consumer mortgage stress as a reason for poor sales over the last 18 months,” Zimmerman explains.
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