Australian Bureau of Statistics data show that household goods spending declined (down 4.4% YoY), marking the ninth consecutive month of negative growth.
Retail sales increased in every state and territory, including the Australian Capital Territory (4.3%), South Australia (3.5%), Western Australia (3.5%), Victoria (2.9%), Northern Territory (2.5%), New South Wales (1.7%) Tasmania (0.8%) Queensland (0.1%).
The Australian Retailers Association reported that retail sales in Australia increased by 2 percent year-on-year (YoY), with consumers spending over $35,8 billion in September.
Sales of clothing, footwear, and accessories increased by 1.1% YoY.
According to a recent study, 55 percent of small- and medium-sized retailers have concerns or are uncertain about the future.
ARA chief executive officer Paul Zahra said in a release that the September results were somewhat more stable than previous months but reiterated that it will still be a ‘nervous wait’ for retailers heading into the all-important Christmas trading period.
“The Reserve Bank of Australia’s [RBA] monetary decision on Melbourne Cup Day will be pivotal to the success of retailers during the most important trading time of the year – and we urge the RBA to hold interest rates considering this,” he said.
According to a new survey by ARA & American Express, 55 percent of small and mid-sized retailers still feel uncertain or worried about their future financial situation as the consumer slowdown continues.
A staggering 43 percent of businesses fail to reach their financial goals, despite the fact that 57 percent are able to overcome economic challenges.
These retailers continue to be impacted by the cost of running a business. Almost all (93 per cent) said they have seen cost increases in their businesses over the past 12 months, with 36 per cent saying their costs have increased by more than 10 per cent—well above the level of inflation.
In the survey, decelerating consumer spending was ranked as the number one concern (57%), followed by wages (41%) cost of products and services (39%), shortages in staff (29%) and cash management (29%)
Retailers are responding to the pressures by prioritising investments in customer acquisition (66%), loyalty (56%), and innovation in artificial intelligence (AI) and ecommerce.
54 percent of these retailers were forced to increase their prices and 28 percent had to cut staff.
One quarter of retail stores are using bonuses and incentives to attract and retain workers. They are all pursuing innovative approaches to boost revenue and cut costs.
Fibre2Fashion News Desk