Australian retailers feel the pain of slump in consumer confidence
AUSTRALIAN retailers endured a lacklustre trading period in March, weighed down by low consumer confidence, competition from international retail giants, unseasonably warm weather and housing affordability woes.
Russell Zimmerman, Australian Retailers’ Association executive director, said in the year to March 2017, national retail turnover rose by a seasonally adjusted 2.15 per cent.
In March, retail turnover slumped 0.1 per cent nationally to $25.63 billion. Australian Bureau of Statistic’s data, released yesterday, also reveals South Australia recorded a fall of 0.1 per cent in sales, to $1.68 billion.
In the 12 months to March, SA recorded a 3.3 per cent rise in turnover, the best result in the nation.
Mr Zimmerman said the year-on-year results Australia-wide, and in SA, indicate the impact broader economic issues, and a tough retail operating environment, are having on the sector.
Furthermore, the recent weakness had foiled the better than expected start to 2017.
Post-Christmas spending in the Boxing Day sales — recorded from December 26 to the end of January — reached 3.11 per cent nationally in the year to January, exceeding ARA and Roy Morgan Research predictions of a 2.9 per cent rise.
“The generally weak trade figures across the board appear to be caused by myriad (factors such as) low consumer confidence, political uncertainty, international competition (and) housing affordability,” he said.
Nationwide, he said, year-on-year growth in the clothing category hit negative territory (-1.62 per cent).
Continued warm weather through the early part of autumn has deterred Australian shoppers from expanding their winter wardrobes, Mr Zimmerman added.
This drop in discretionary spending is also being felt in categories such as cafes, restaurants and takeaway outlets and food retailing.
Mr Zimmerman said immediate action was needed by the Federal Government: “Retailers are looking to tax reform, infrastructure investment and additional skills funding to stimulate the growth that the sector vitally needs”.
Yesterday afternoon, the Twitter account of the State Government’s press secretary posted: “ABS figures released today shows South Australia leads the nation in retail spending growth”, along with a chart of year-on-year comparisons by state and territory.
It was later retweeted by SA Treasurer, Tom Koutsantonis, via his own Twitter account.
