December retail sales a welcome boost but Omicron set to hit January spending

Australian retail sales in December have improved on the previous year as consumers took advantage of eased Covid restrictions, according to Mastercard SpendingPulse™, which measures in-store and online retail sales across all forms of payment.

 

Retail sales across the country increased 4.6% in December compared to the same time the previous year and are up 10.4% on pre-pandemic levels in 2019.

  

Household goods was the top performing retail category, up 11% in December compared to the previous year, with Clothing up 7.7% the other strongest performing category. However, Department Store sales were down 3.2%, mainly reflecting the reduced foot traffic in CBD locations.

  

All states and territories recorded an increase in sales in December compared to the previous year, with Victoria and Tasmania leading the way, both up 8.5%.

 

However, Australian Retailers Association CEO Paul Zahra said sales are likely to be impacted in the new year with Omicron causing significant disruptions.

 

“The new year has delivered new challenges for retailers in the form of Omicron with tens of thousands of people being forced into isolation every day, and that’s taking a huge toll on the industry – and small businesses in particular, where just a few absences can wipe out an entire store’s workforce,” Mr Zahra said.

  

“Whilst Christmas and holiday spending has held up well in December, and improved on last year, we had yet to reach the peak of Omicron and consumers were feeling more confident while going about their shopping. The trading environment has changed significantly this month with positive Covid cases and staff shortages resulting in some businesses having to limit their trading hours or close stores altogether.

 

“We welcome the easing of close contact isolation requirements for essential food distributors, and other industries, but we’d like to see this expanded to broader retail to help with the staffing shortfall. Allowing foreign students to work extra hours is a positive step, along with visa fee rebates, but we need to get more people back to work sooner where it is safe to do so.

 

“The Omicron impacts are set to be ongoing and targeted support packages need to be considered by governments to assist small businesses through this latest challenge.”

 

Mastercard SpendingPulse™ reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check.

 

Mastercard SpendingPulse December 2021

 

SECTORS (TOTAL SALES) SEASONALLY ADJUSTED GROWTH NOMINAL SALES GROWTH
  Dec-21 vs Nov-21 Dec-21 vs Dec-20 Dec-21 vs Dec-19
TOTAL AUSTRALIA RETAIL SALES -3.2% +4.6% +10.4%
Clothing -12.8% +7.7% +12.8%
Department stores -3.0% -3.2% -4.1%
Household goods -2.1% +11.0% +21.6%
Food retailing +0.9% +1.2% +9.8%
STATE/TERRITORY % CHANGES FOR TOTAL RETAIL SALES NOMINAL SALES GROWTH
  Dec-21 vs Dec-20 Dec-21 vs Dec-19
New South Wales +1.5% +4.5%
Victoria +8.5% +10.4%
Queensland +4.4% +15.5%
Western Australia +6.3% +17.9%
South Australia +0.2% +5.9%
Australian Capital Territory +8.1% +18.3%
Northern Territory +3.5% +22.5%
Tasmania +8.5% +12.7%
Australia +4.6% +10.4%

Mastercard SpendingPulse™ reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check. As such, SpendingPulse™ insights do not in any way contain, reflect or relate to actual Mastercard operational or financial performance, or specific payment-card-issuer data.

 
 
 

ENDS…

 
 

Media Enquiries:

 

ARA Media Team

T 0419 270 863

E media@retail.org.au

 

About us: The Australian Retailers Association (ARA) is the oldest, largest and most diverse national retail body, representing a $360bn sector which employs 1.3 million Australians and is the largest private sector employer in the country. As Australia’s peak retail body, representing more than 100,000 retail shop fronts and online stores, the ARA informs, advocates, educates, protects and unifies our independent, national and international retail community. To learn more about ARA’s exclusive member benefits and more, visit retail.org.au

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