As was to be expected, April retail sales plummeted according to the Australian Bureau of Statistics (ABS)’s latest figures.
Retail turnover fell 17.9 per cent, the strongest seasonally adjusted fall ever published from the Retail Trade survey. Food retailing, cafes, restaurants and takeaways, and clothing, footwear and personal accessories show particularly strong falls as regulations regarding social distancing measures limited the ability of businesses to trade as normal for the entire month.
National Retail Association (NRA) CEO Dominique Lamb says the sobering figures show that April saw the full force of Covid-19 hit the economy.
“April was the first full month to encompass the stringent lockdown restrictions on business and these preliminary figures show the devastating impact dealt to the retail sector,” she says.
“It was feared that the tsunami of panic buying we saw in March would result in shoppers placing a padlock on their wallets and purses in April and this is exactly what has happened.
“Every single area of retail recorded a giant fall according to these figures, including businesses that weren’t forced to close.
“We know that governments at all levels have introduced measures to assist business, but these results underline the need for continued support to save hundreds of thousands of jobs.
“Given restrictions are starting to be lifted, we suspect that April will be the worst period but there’s a long way to go before retail starts to see light at the end of the tunnel.”
Indeed, it’s a tough road ahead for retailers so the ACCC’s decision to authorise tenants to collectively bargain with landlords for continued rental relief if they’ve been adversely affected by Covid-19 has been welcomed.
“Retail has been hit hard by Covid-19, with NRA members losing $1 billion in the month of March alone.
“The ability for tenants and landlords to get together and collectively negotiate outcomes that maximise the chances of businesses meeting their rental obligations will be very beneficial.
“The ACCC decision ruling will improve the quality of information accessible to both tenants and landlords, which will result in better negotiations and more appropriate rent relief measures.”
