This article is from the Australian Property Journal archive
AUSTRALIAN retail sales increased 9.9% in April compared to the same time last year, according to Mastercard SpendingPulse, with all categories of retail recording strong year-on-year sales growth.
Mastercard SpendingPulse data, which measures in-store and online retail sales across all forms of payment, showed electronics leading the way with a 20.3% jump, followed by fuel and convenience (up 17.6%), groceries (up 16.4%), home furnishings (up 15.7%), jewellery (up 13.2%), apparel (up 11.9%) and lodging (up 9.2%).
Australian Retailers Association CEO Paul Zahra said that whilst it is pleasing to see a strengthening of sales, ongoing inflationary pressures are continuing to challenge many businesses.
“April was another strong month for retail with businesses spurred along by increased spending around the Easter holiday with people getting away for a well-earned break and stocking up on food and drinks for their family get togethers. COVID restrictions were also eased, including close contact isolation requirements, which allowed many businesses to trade closer to their full potential.
“However, whilst overall retail sales continue to increase, so too does the cost of doing business with inflationary pressures impacting operations. We’re also seeing many households start to tighten their budgets with interest rates now on the rise.”
Australian Bureau of Statistics data this week showed base wages lifted by 0.7% over the March quarter and 2.4% over 12 months, well behind the 5.1% annual jump in the cost of living.
“The higher consumer prices that are flowing through the economy are also contributing to the increased levels of sales, so while retail turnover is strong it doesn’t necessarily mean businesses are thriving, as they too have to manage the higher cost of living,” Zahra said.
Strong sales and improved leasing spreads for the March quarter have been reported by major shopping centre landlords including Vicinity and the GPT Group.
