News Articles

Retailers quietly optimistic as consumers maintain spending - September Retail Trade Trends released today

Peak retail industry body the Australian Retailers Association (ARA) said it was optimistic the 0.2 percent increase in September 2008 retail trade figures released today would continue the upward trend in the months leading into Christmas.

According to the ARA's Executive Director Richard Evans the September retail trade figures are welcomed news for struggling retailers, indicating consumers with disposable dollars are likely to inject much-needed funds back into the retail sector during the Christmas period.

"It is clear from the September figures that if consumers have disposable income, they will spend it. The increase has been slow and steady over the past few months but these figures show tax deductions and lowering interest rates have put cash back into the pockets of consumers who are gaining the confidence to re-enter the marketplace and spend responsibly.

"It is too soon to predict retail trade during the crisis in October because there are many variables, including the RBA's likely interest rate cut tomorrow, the effect of Rudd's stimulus package and continued strong employment. However, the September Retail Trade Trends are a positive indication that the financial relief being offered to consumers will make its way to retailers, allowing it to flow through the rest of the economy.

"It's positive there are continued trade increases for the industries which have been suffering the most including clothing and soft good retailing (+0.3 percent) and cafes, restaurants and takeaway food services (+0.2percent). However, after domestic appliance sales peaked in the lead up to the Olympics, the household goods sector is experiencing a significant decrease (-0.6 percent) and the effect of the weakening Australian dollar in this heavily imported industry is yet to be seen.

"The September Retail Trade Trends are a glimmer of light for retailers who have been suffering for most of the year and hopefully there will be more good news for the sector in the months to come. Without relying on credit and with some responsible spending, Australian consumers should feel confident they can enjoy the upcoming Christmas season," Evans said.

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

Options:

View Archives