Cost of Living, Rate Rises Push Down Retail Turnover

Australian retail turnover ran flat in April after rises in the previous two months.

According to Australian Bureau of Statistics (ABS) data, turnover was unchanged (0.0 per cent) across the month.

It followed a 0.4 per cent rise in March and 0.2 per cent rise in February.

ABS head of retail statistics Ben Dorber said the slowdown in retail spending seen since the start of the year had continued in April.

“Retail turnover has plateaued over the past six months as consumers spent less on discretionary goods in response to cost-of-living pressures and rising interest rates,” he said. “Spending was again soft in April but was boosted by increased spending on winter clothing in response to cooler and wetter than average weather across the country.”

Clothing, footwear, and personal accessory retailing (1.9 per cent) and departments stores (1.5 per cent) were the only retail categories to rise in April.

Households goods retailing (-1.0 per cent) recorded its third straight monthly fall in turnover, while other retailing remained unchanged.

Food-related spending was down this month, with falls in both cafes, restaurants and takeaway food services (-0.2 per cent) and food retailing (-0.1 per cent). Food retailing recorded its first fall following 13 straight monthly rises.

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“The modest fall in food-related spending comes after a period of consistent growth driven largely by high food inflation,” Dorber said.

“Spending at cafes, restaurants and takeaway food services remains at a particularly high level despite the fall in April, with turnover up 13.3 per cent compared to this time last year.

“Spending has also been boosted by the return of large-scale sporting and cultural events.”

There were mixed results across the states and territories with four falls and three rises, while the Northern Territory remained unchanged.

Tasmania (-1.5 per cent) recorded the largest drop, followed by falls in New South Wales, Victoria, and the Australian Capital Territory. The largest rise was recorded in Western Australia (+1.0 per cent) followed by smaller rises in South Australia and Queensland.

“Turnover is at a record level in South Australia following three straight rises of 0.6 per cent and boosted by the inaugural AFL Gather Round and LIV Golf Adelaide tournament this month,” Dorber said.

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