While retail sales rose 2.5 per cent in the December quarter 2020 according to Australian Bureau of Statistics (ABS) figures, this was mainly because of Victoria.
“The quarterly rise was driven by Victoria (12.8 per cent) as volumes recovered following Covid-19 restrictions from August to October,” Ben James, director of Quarterly Economy Wide Surveys, says.
“Without the Victorian rise, seasonally adjusted volumes would have fallen in the December quarter 2020.”
Indeed, Australian retail turnover fell 4.1 per cent in December 2020, seasonally adjusted, with falls recorded in every state including Victoria.
“Victoria (-6.8 per cent) led falls at the state and territory level following stronger trade in November as Covid-19 restrictions eased. New South Wales (-4.9 per cent) also fell as the Northern Beaches cluster impacted spending in the lead-up to Christmas.”
Queensland (-1.8 per cent), Western Australia (-2.0 per cent), Tasmania (-4.6 per cent), South Australia (-0.7 per cent), and the Australian Capital Territory (-1.6 per cent) also fell.
Despite the falls, in annual terms retail turnover remains at elevated levels, 9.6 per cent above the levels of December 2019.
Aussie shoppers went all out for Christmas in 2020, spending more than $55 billion during the Christmas trade period, which spans the second-half of November and all of December.
NRA CEO Dominique Lamb says that pent up demand following lockdowns and an inability for Australians to travel overseas had led to high levels of discretionary spending during the festive season.
“The ABS December figures are in line with the NRA’s pre-Christmas forecast that the 2020 festive season would be the biggest on record,” she says.
“From Black Friday and Cyber Monday in November right through to the final days before Christmas and Boxing Day, consumers across the country splashed their cash at the shops.
“The reopening of state economies coupled with Australians unable to spend the holiday period overseas led to a higher than usual level of discretionary spending.
“We also saw a substantial increase in online spending, with digital sales eclipsing the $5 billion mark across the Christmas period.”
Lamb notes that while the figures are promising, the economy remains in a volatile state.
“These figures bode well for retailers, but as recent lockdowns in Queensland and Western Australian show the economy remains in a volatile state. Until a vaccine is widely administered there will remain a degree of uncertainty and the retail sector will continue to keep its guard up.”
