It seems consumers are holding out for Black Friday and Cyber Monday to start spending again, as retail turnover rose by just 0.1 per cent for the first month of spring, according to the Australian Bureau of Statistics (ABS).
“The Christmas trade period is crucial every year to retail, but with the current cost-of-living crisis it will take on greater importance for the sector this year,” says National Retail Association (NRA) interim CEO, Lindsay Carroll.
“The ABS figures reveal that spending in September was not disastrous, but it was well below the August turnover. Households are clearly still being extremely careful with how they spend money during the current economic environment.”
However, household goods did represent a silver lining, gaining 0.5 per cent after negative growth the previous month.
“We acknowledge that September isn’t traditionally a busy month for retail as shoppers are mindful that the festive season is just around the corner. But many NRA members will be hoping for a stronger than usual festive period to help withstand the current challenging economic conditions.”
Australian Retailer Association (ARA) CEO, Paul Zahra, adds that retailers have their sights firmly set on the peak season including Black Friday and Cyber Monday and the all-important Christmas and holiday period.
“We know this year more people will be shopping even earlier, planning to complete their gift purchases at the legendary Black Friday and Cyber Monday period, which is why many retailers are eagerly anticipating the back end of this month,” he says.
Indeed, while there is great resilience within the industry, many retail businesses in the sector are doing it tough, especially small businesses.
“This remains one of retail’s most challenging years with a continued slowdown in discretionary spend, high business costs along with ongoing challenges such as retail crime, supply chain disruptions and the most significant workplace relations reforms in decades.”
