Australian Retail Turnover Remains Weak in April

Highlights:

• Minimal Growth: Australian retail turnover increased by only 0.1% in April 2024, following a 0.4% decline in March, indicating weak underlying retail spending.
• Sector Performance: Non-food industries saw mixed results, with other retailing up by 1.6%, household goods by 0.7%, and department stores by 0.1%, while clothing and personal accessories fell by 0.7%.
• State Variations: New South Wales led with a 0.7% increase in retail turnover, followed by South Australia at 0.5%, while turnover remained steady in Western Australia, Tasmania, and the Northern Territory.

Minimal Growth in Retail Sector

Australian retail turnover saw a slight increase of 0.1% in April 2024, according to seasonally adjusted figures released by the Australian Bureau of Statistics (ABS). This follows a 0.4% decline in March and a 0.2% rise in February, indicating a trend of weak underlying retail spending.

Cautious Consumer Behavior

Ben Dorber, head of retail statistics at the ABS, noted that the modest rise in April’s turnover is insufficient to offset the previous month’s decline. "Since the beginning of 2024, retail turnover has been largely stagnant as consumers exercise caution and reduce discretionary spending," Dorber stated.

Sector Performance

In April, most non-food related industries experienced a rise in turnover. Other retailing saw the highest increase at 1.6%, followed by household goods retailing at 0.7%, and department stores at 0.1%. Conversely, clothing, footwear, and personal accessory retailing dropped by 0.7%.

Food-related spending was mixed, with food retailing falling by 0.5%, reversing the 0.8% rise seen in March. However, cafes, restaurants, and takeaway food services saw a slight increase of 0.3%. Dorber attributed the decline in food retailing to an early Easter, which had boosted alcohol sales in March.

State Variations

Retail turnover growth varied across the states. New South Wales recorded the highest increase at 0.7%, followed by South Australia at 0.5%. Meanwhile, turnover remained relatively unchanged in Western Australia, Tasmania, and the Northern Territory.

The ABS will release more detailed information on the April reference period on June 4, 2024. The bureau also announced that it will cease the publication of Retail Trade, Australia in July 2025, as part of changes to its data collection and reporting methods.

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