Consumer cutting back on household goods and clothing

Retail turnover has now increased for three consecutive months, but sales remain at low levels as consumers think twice before spending.

Turnover rose 0.9% in September, after previously increasing 0.3% in August and 0.6% in July, according to the Australian Bureau of Statistics (ABS).

“The warmer-than-usual start to spring lifted turnover at department stores, household goods and clothing retailers, with more spending on hardware, gardening, and clothing items. Also adding a boost to turnover in household goods retailing was the release of a new iPhone model and the introduction of the Climate Smart Energy Savers Rebate program in Queensland,” ABS Head of Retail Statistics Ben Dorber said.

However, he also said that “subdued spending for most of 2023 means that underlying growth in retail turnover remains historically low”.

Retail turnover in September was only 2.0% higher year-on-year. Looking at the different retail categories, the change in turnover was:

• Cafes, restaurants & takeaway food services up 6.1% year-on-year.
• Food retailing up 3.5%.
• Other retailing up 1.6%.
• Department stores up 1.3%.
• Clothing, footwear & personal accessory retailing up 1.1%.
• Household goods retailing down 4.0%.

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