Retail gross sales rose 2.7% in June

Australian retail sales rose seasonally adjusted 2.7% in June 2020, according to the retail trade figures from the Australian Bureau of Statistics (ABS), although retail sales decreased 3.4% in June 2020.

Ben James, director of Quarterly Economy Wide Surveys, said this followed a 16.9% increase in May 2020.

"In June, trade-restricted industries continued to recover in April and early May," said James. "Cafés, restaurants and takeaways (27.9%), as well as retail clothing, shoes and personal accessories (20.5%) saw strong increases from month to month."

Grocery retailing (0.9%) was boosted by month-end sales growth in Victoria. Other retail trade (0.3%) increased in June, while department store purchases (-12.1%) and household goods retail (-3.2%) fell.

Seasonally adjusted, there were increases in New South Wales (3.7%), Victoria (4.1%), Western Australia (2.5%), South Australia (1.3%), Tasmania (4.0%), Queensland (0 , 4%) and the Australian Capital Territory (3.8%). The Northern Territory (-4.9%) fell in June 2020, seasonally adjusted.

Online sales remain high, accounting for 9.7% of total retail sales as of June. Online contributed 6.1% in June 2019.

Dominique Lamb, CEO of the National Retail Association, said the reintroduction of lockdowns in Victoria, the return of panic buying in parts of the country, and general nervousness during a second wave of COVID meant retailing remained challenging in the months to come Time would experience.

"Although sales increased in June, retail volume for the quarter declined by the largest amount since the GST was introduced," said Ms. Lamb.

“It was the first full month restaurants and clothing stores were allowed to trade, and many had to close in April and May. We expected an increase in sales for these businesses, but sales for this retail segment are still well below June 2019. "

Ms. Lamb noted that the situation in Victoria shows the retail sector is on a bumpy path, especially as other states are forced to reintroduce restrictions as well.

"Victoria, which is entering Phase 4 of the lockdown, ensures that retailers in this state are sure to suffer immensely for the foreseeable future.

"Panic buying is returning in certain parts of the country and consumers are becoming increasingly nervous about possible spikes in infections.

“With just one percent of retailers looking to hire more people right now, business confidence remains persistently low. The JobKeeper and JobSeeker expansions will help, but employers will continue to be very careful over the coming period, ”said Ms. Lamb.

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