While the majority of retailers have closed their doors to the COVID-19 block, Australian Retailers Association CEO Paul Zahra said that the 10.1% year-on-year retail figures released in March met expectations of a strong block specific Growth category.
As the Australians adjusted to restrictions and stocked up with additional items to block, retail saw an increase in housewares (10.3%). The figures also confirm higher expenditure on food (+ 27.2%), spirits (+ 33.9%) and pharmacies (+ 29.4%) compared to the previous year.
"March was the eye of the COVID-19 storm for retailers …" explains Zahra.
"… Forced to close all of their physical services stores except for essential service retailers. While this pain of closure continued in April and well into May, we saw a slight upward trend as many stores improved their online and delivery services. "
“Since the beginning of the COVID 19 pandemic, we have expected an increase in certain categories as people adapt to restrictions. However, these increases mask larger falls in various discretionary categories, which has proven to be a significant challenge, ”says Zahra.
"It has undoubtedly been difficult for retailers, and the true picture of the recovery will not be seen until physical stores are fully reopened in the coming weeks." We'll likely see a gradual reopening – retailers have different considerations, some will open important stores and wait for others to open. Some have connected cafes and need to delay opening this area. Others are still negotiating with landlords.
"Although we expect Australians to celebrate their freedom soon with one of their favorite leisure activities – shopping, we expect consumers to remain cautious about the macroeconomic environment for a few more months."
Click here to read the full ARA press release.
