Volumes decrease for the fifth time in six quarters
Australian retail sales volumes declined by 0.4% in the March quarter of 2024, continuing a trend of fluctuating performance over recent quarters, figures released by Australian Bureau of Statistics (ABS) have shown.
The quarterly decrease follows a 0.4% rise in the December 2023 quarter and a 0.2% fall in the September quarter of the same year.
“Retail sales volumes fell for the fifth time in the past six quarters as consumers cut back on buying large household items such as furniture and electronic goods,” said Ben Dorber (pictured), ABS head of retail statistics. “The only rise in volumes over the past 18 months was the December quarter last year as extensive discounting from Black Friday sales boosted volumes.”
“Retail sales volumes fell for the fifth time in the past six quarters as consumers cut back on buying large household items such as furniture and electronic goods," Ben Dorber, ABS head of retail statistics
— Australian Bureau of Statistics (@ABSStats) May 7, 2024
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Compared to the March quarter of the previous year, retail volumes have fallen by 1.3%, marking the fourth consecutive year-on-year decline.
On a per capita basis, retail volumes declined for the seventh consecutive quarter by 1%, down 3.6% from last year.
“Per capita volumes show retail turnover after the effects of inflation and population growth have been accounted for,” Dorber said. “Following an unprecedented seven straight falls, it is very clear how much consumers have pulled back on spending in response to cost-of-living pressures over the past two years.
“With persistent price inflation on non-discretionary essentials like healthcare, education and housing, discretionary retail spending has been squeezed.”
The ABS said the reduction in retail volumes this quarter was predominantly driven by a 2.9% decrease in household goods retailing, which offset a 2.3% increase in the previous quarter.
“Consumers spent big on household goods during the pandemic period, with strong sales volumes growth for furniture and electrical goods peaking in December quarter 2021,” Dorber said. “Since then, this industry has been the most affected by rising cost-of-living pressures with retail sales volumes falling in seven of the nine quarters since that peak.”
The report also highlighted modest gains in some retail sectors. Clothing, footwear, and personal accessory retailing saw the most significant increase, up 1.3%. This was followed by other retailing sectors, which rose by 0.5%, and cafes, restaurants, and takeaway food services, which saw a 0.3% increase. Food retailing, however, remained unchanged.
Regionally, most states and territories witnessed a decline in retail volumes, except for the Northern Territory and Tasmania, which saw increases of 0.5% and 0.3%, respectively.
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