Consumers capitalised on discounts during the period
Retail sales volumes increased by 0.3% in the December quarter of 2023, the Australian Bureau of Statistics (ABS) has reported.
The uptick follows a slight decline of 0.1% in the September quarter of last year and a more pronounced drop of 1.1% in the June quarter.
Ben Dorber, head of retail statistics at the Australian Bureau of Statistics, noted that the rise in December’s retail sales volumes was buoyed by reduced price growth for retail goods.
“Consumers particularly took advantage of discounting for discretionary items like furniture and electronic goods,” he said, commenting on the latest ABS figures.
However, despite this increase, retail sales volumes were still down by 1% compared to the same period in 2022.
On a per capita basis, retail volumes experienced a decline for the sixth consecutive quarter, dropping by 0.3%, which amounts to a 3.5% decrease compared to the previous year.
“Removing the effects of strong population and price growth clearly shows how consumers have responded to cost-of-living pressures,” Dorber said. “Sales volumes per person have fallen every quarter since reaching a peak in June 2022, although they remain above pre-pandemic levels.
Meanwhile, the growth in retail prices also slowed during the quarter, with a rise of 0.1%, compared to 0.6% in the previous quarter, based on data from the latest Consumer Price Index. This marks the smallest quarterly increase in retail prices since the September quarter of 2021.
Retail prices rose by 2.4% compared to the same period last year, a significant decrease from the peak of 7.6% observed in the December quarter of 2022.
The increase in volumes was predominantly driven by non-food related industries. Among these, household goods retailing experienced the largest rise at 2.3%, followed by other retailing at 0.4%, and department stores at 0.2%.
However, clothing, footwear, and personal accessory retailing saw a decline of 1.6%, marking the second consecutive quarterly decrease, although retail volumes are still up by 0.5% compared to the previous year.
Food retailing saw a 0.5% increase following two consecutive quarterly declines. This rise was supported by a slowdown in food price growth, which decreased to 0.6% from 0.8% in the previous quarter.
Cafes, restaurants, and takeaway food services experienced a notable decline of 2.1%, marking the third consecutive quarterly decrease and the largest decline since the September quarter of 2021. Volumes continue to fall from previously elevated levels.
Most states and territories saw an increase in retail volumes during the quarter, with Victoria being the only state to record a decline of 0.5%, while the Australian Capital Territory remained unchanged.
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