News Articles

Early Christmas shoppers snub clothing retailers and department stores- November ABS retail trade figures out TODAY

Peak retail industry body the Australian Retailers Association (ARA) said the unchanged month on month result reported in today’s November ABS retail trade figures was disappointing for retailers who hoped for an early Christmas shopping boost, however the 3.1 percent overall year on year growth gave retailers a reason to be hopeful for a successful Christmas trading period.

ARA Executive Director Russell Zimmerman said the 3.1 percent boost compared to November 2010 showed the interest rate cut was what consumers needed to kick start their shopping for the season but department stores and clothing and footwear retailers missed out as shoppers instead looked for recreational goods, hardware and gardening supplies, furniture, cosmetics and groceries for the festive season.

“Monthly November figures came from a strong base of growth in October but year on year growth suggests that once the November interest rate cut was honoured by the banks, consumers felt some early respite as they geared up to do some early Christmas shopping for the silly season.

“However, when compared to trade for the same period in 2010 there were still significant declines in the in the department store (-4%) and clothing and footwear (-3.5%) categories which is disappointing given these stores are reliant on seasonal spending and the last two weeks of November are the beginning of the Christmas period.

“Looking ahead to December we know most people leave their Christmas shopping until the last minute so coupled with December’s interest rate cut this will hopefully mean December trade fared better on the fashion front.

“The year on year boost in household goods (2%) and food (5%) categories show there would have been some feasts across Christmas tables and continues the trend towards entertaining at home. It appears having friends around for the traditional Aussie BBQ with drinks in the Esky is very much in fashion.

“The year on year boost is hopefully a sign of things to come for both the December trading period as well as the New Year as retailers bring in new stock and consumers realise they’re able to splash out on some items with some pressure is relieved on household budgets.

“The ARA is warning consumers are still sensitive and with the focus now on ‘back to school’ and rebalancing household budgets they won’t be able to afford any increases in interest rates or new taxes or charges as federal and state budgets are announced.

“In addition retailers certainly can’t afford to bear the brunt of any more strain on consumer sentiment or regulatory burdens imposed on business and this would certainly dash any hope of continued growth in early 2012,” Zimmerman said.

MONTHLY RETAIL GROWTH (October  2011 – November  2011) Household goods retailing (0%), Food retailing (0%), Cafes, restaurants and takeaway food services (0.1%), Other retailing (0.3%), Department stores (-0.1%) and Clothing, footwear and personal accessory retailing (-0.4%). Total sales (0%)

Western Australia (0.8%), Victoria (-1.1%), South Australia (0.2%), NorthernTerritory (0.4%), Queensland (0.5%), Tasmania (0.4%), New South Wales (0.3%) and the Australian Capital Territory  (-1.9%)

YEAR-ON-YEAR RETAIL GROWTH (November  2010-  November  2011) Clothing, footwear & personal accessory retailing (-3.5%), department stores (-4%), cafes, restaurants & takeaways (3.5%), other retailing (6%), food retailing (5%) and household goods retailing (2.1%), Total sales ( 3.1%).

New South Wales (1.9%), Queensland (3.9%), Western Australia (11%), Victoria (1.2%), South Australia (1.4%), Tasmania (0.3%), Australian Capital Territory (-3.2%), Northern Territory (8.9%), total sales (3.1%).

For over 100 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia’s $240 billion retail sector which employs over 1.2 million people. Visit www.retail.org.au or call 1300 368 041.

-ends- For interview opportunities with ARA Executive Director Russell Zimmerman
contact: Andie McMaster, Media and Communication Officer T: 0408 613 178 E: media@retail.org.au

Options:

View Archives