Retailers struggling to coax sales from money-conscious consumers
Retail sales revenue rose just 1.6% in the year to February, well below the 3.4% inflation recorded during the same period, according to the latest data from the Australian Bureau of Statistics.
The Northern Territory was the only part of the country to record above-inflation sales growth (3.5%).
Meanwhile, sales rose 2.5% in Queensland, 2.4% in South Australia, 2.0% in Tasmania, 1.7% in Victoria, 1.5% in Western Australia, 0.7% in the ACT and 0.5% in New South Wales.
Australian Retailers Association CEO Paul Zahra said retailers were doing it tough.
“Australians are still cutting back on spending as the lag effect of interest rate rises continues to take hold. While food spending remained constant, there has been a shift towards more affordable and value-oriented products in recent months,” he said.
“The ongoing cost-of-living pressures and interest rate ramifications are making it a challenging period for those in the discretionary retail sector.
“Any growth that has been achieved is mostly being fuelled by the Australian population increases of 2.5% across the past year.”
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