The October 2017 edition of the quarterly AFGC CHEP Retail Index has signalled continued retail turnover growth in Australia, but with a levelling out over the coming months of 2017, following the pickup in spending growth experienced in the first half of the year.
The Index is based on transactional data from CHEP pallet movements and analysis by Deloitte, giving a unique insight into the Australian retail sector.
Key figures from the latest Index predict:
- 3.3 per cent year-on-year retail turnover growth to the month of September 2017, trending relatively flat to 3.4 per cent year-on-year for the month of November. This is down from the slightly higher 3.8 per cent growth recorded year-on-year for June and August 2017.
- On a quarterly basis, three per cent year-on-year growth to the September quarter trending to 3.3 per cent year-on-year for the December quarter.
AFGC CEO Tanya Barden said: “Although we continue to see retail growth, the brakes will be reapplied slightly leading into Christmas. This follows the modest but welcome pick-up in the first half of the year. Financial risks are being felt more acutely by many consumers, which is affecting their sentiment and spending. Retail price growth has been very slow at around one per cent over the year.”
CHEP Asia Pacific President Phillip Austin said: “The build to the Christmas trading period requires a particular supply-chain focus for both manufacturers and retailers to optimise inventory and maximise on-shelf availability, in the face of both intense competition and lower consumer sentiment. CHEP is actively supporting the end-to-end supply chain by ensuring the depth and breadth of supply of pallets and other transportation platforms, to enable the best outcomes for all parties.”