Australian retail sales volumes have encountered a setback for the third consecutive quarter, declining by 0.5 per cent in the June quarter of 2023, according to recent data released by the Australian Bureau of Statistics (ABS). The drop comes after a 0.8 per cent decrease in the previous quarter and a 0.4 per cent fall in the December 2022 quarter.
The decline in retail volumes reveals the extent to which consumers have scaled back their spending in response to mounting cost-of-living pressures. This marks the first time since 2008 that retail sales volumes have seen three consecutive quarterly falls. Compared to the same period last year, retail volumes are down by 1.4 per cent, the first annual decline since 1991 outside of the pandemic period.
On the other hand, retail prices rose by 0.9 per cent in the June quarter, indicating some inflationary pressures. This is the seventh consecutive quarter of price growth but shows a slower pace compared to the previous year.
Retail sales volumes varied across industries and regions. Food retailing experienced a 0.7 per cent decline, while cafes, restaurants, and takeaway food services fell by 0.1 per cent. Household goods retailing and department stores also faced declines of 1.5 per cent and 1.4 per cent, respectively. However, clothing, footwear, and personal accessory retailing witnessed a 1.1 per cent rise, boosted by promotional activities and discounting.
The five eastern states and territories recorded a fall in retail volumes, while the Northern Territory, Western Australia, and South Australia experienced modest increases.
These figures highlight the challenges faced by the retail sector, as consumers continue to navigate economic uncertainties and adjust their spending patterns. Retailers will need to adapt to changing consumer behaviors and consider innovative strategies to stimulate demand in an evolving market landscape. Policymakers and industry stakeholders will closely monitor these trends to support the retail sector’s recovery and contribute to overall economic stability.
https://www.abs.gov.au//media-centre/media-releases/retail-volumes-fall-third-straight-quarter