Australian retail turnover rose 1.1 per cent in April 2021 according to the Australian Bureau of Statistics (ABS), continuing retail’s recovery in a positive way.
Food retailing led the rises in April, following falls in both February and March 2021, says Ben James, director of Quarterly Economy Wide Surveys.
“All industries except department stores rose, with similar rises for cafes, restaurants, and takeaway food services, household goods retailing, and other retailing.”
Indeed, the preliminary figures show $31 billion was spent in stores and online in April, an increase of 25.1 per cent in turnover compared to April 2020. However, the sharp rise comes as most physical stores were closed in April 2020 and people were confined to their homes.
Whilst the results are pleasing, it doesn’t paint a complete picture of what the retail sector is going through as our recovery is uneven, and some businesses are in a better position than others, says Australian Retailers Association (ARA) CEO, Paul Zahra.
“CBD retailers, particularly small businesses, along with travel retailers are our biggest concern,” he explains.
“They continue to suffer through the absence of international students, tourists and city office workers.
“International border closures are also contributing to Australia’s skills shortage, which is front of mind for many retail businesses, who are struggling to fill positions due to a lack of skilled migrants.”
Figures from ARA’s strategic partner Mastercard also show positive signs for retail spending, with household good showing 6.9 per cent year-on-year growth according to its SpendingPulse report, which provides insights into retail spending trends, reporting on national retail sales across all payment types in select markets around the world.
There was a 178.5 per cent increase in sales for clothing retailers compared to a year earlier. This reflects just how much spending dried up in fashion when Australians were locked down in April 2020 and how some of the discretionary categories are bouncing back, recording its sixth straight month of positive year on year growth.
“Retail sales are tracking well overall, but we know that not everyone is benefiting from the same levels of buoyant spending. Our economic recovery will remain uneven as long as international borders remain closed,” says Zahra.
