Consumers spent $37.3 billion across the country in March, according to figures released by the Australian Bureau of Statistics (ABS).
Australian retail turnover rose 0.3%, following a rise of 0.2% in February and a rise of 0.4% in January. Year on year, retail sales increased 4%.
“Retail spending continues to grow at a steady pace, with food-related spending in supermarkets and grocery stores the main driver of growth,” says ABS Head of Business Statistics Robert Ewing.
“Supermarket and grocery store sales were especially strong in Queensland where households stockpiled essentials in anticipation of Ex-Tropical Cyclone Alfred.”
Food retailing (up 0.7%) had the largest rise, alongside other retailing (up 0.7%). This was followed by a smaller increase in clothing, footwear and personal accessory retailing (up 0.3%). Household goods retailing was flat.
Cafes, restaurants and takeaway food services and department stores both fell by 0.5%.
Retail turnover rose in all states and territories, except for Queensland (down 0.4%) as Ex-Tropical Cyclone Alfred negatively impacted spending.
“The extreme weather early in the month led to significant disruptions for businesses and households throughout Queensland,” says Ms Ewing.
“Strong spending in food retailing thanks to precautionary buying wasn’t enough to offset other impacts. These included temporary business closures for many retailers, particularly cafes and restaurants, while people were also advised to stay home and avoid unnecessary travel.”
Year on year sales
All categories were up year on year. The other retailing category experienced the most significant increase (up 9% year-on-year), followed by clothing, footwear and accessories (up 5%). Spending in the categories of food, department stores and household goods all rose 4% over the past year. There was marginal growth in cafes, restaurants and takeaways, which increased by only 1%.
Australian Retailers Association Chief Industry Affairs Officer Fleur Brown says while the steady growth is heartening, cost-of-living pressures and economic uncertainty continues to impact consumer behaviour.
“This is another solid result during a challenging economic period,” she says.
“While hospitality growth was impacted by the change in Easter holiday timing, overall, it’s encouraging to see another month of steady growth across most spending categories.
“With a delay in interest rate relief, household budgets remain tight, and retailers are operating in a highly competitive and volatile environment with rising business costs. Any signs of stability in consumer spending are a welcome boost to business confidence, but we remain far from a retail recovery.
“Alongside the cost-of-living crisis, retailers continue to be impacted by years of rising costs – from rent and wages, to energy, insurance, transportation and all kinds of supply chain impacts.”
