However, according to the ABS data released on Thursday (4 November), retail sales figures for the September quarter declined 4.4 per cent compared to the previous quarter, mainly due to the closure of physical stores in our two biggest states. Discretionary retail categories, including clothing, footwear and personal accessories and department stores recorded double-digit falls for the September quarter.
“Most discretionary retail stores make up to two thirds of their profits during the festive trading period, and with the worst of the lockdowns now behind us, many of these businesses will be looking to make up for the substantial trading losses they’ve incurred in recent months and are looking forward to a positive Christmas,” said Australian Retailers Association chief executive Paul Zahra.
The ABS found online sales represented 15.3 per cent of total retailing in September – a record high. A record $4.3 billion was spent online, an increase of 3.4 per cent compared to the previous month and up a significant 42.6 per cent compared to September 2020.
Non-food online sales were $3.2 billion in September – an increase of 48.2 per cent compared to the same time last year. Online food sales in September were $1.1 billion – an increase of 28.4 per cent compared to September 2020.
Mr Zahra said Australians in locked down jurisdictions turned to the internet in a big way for their shopping, but the figures should stabilise in the coming months as people return to physical stores.
“More Australians are getting the things they need online with a few taps of their fingers, and the investments retailers have made to boost their digital offerings are paying off,” Mr Zahra said.
“Whilst the record amount of online spending was driven by lockdowns in NSW, Victoria and the ACT, where people were limited in terms of their physical shopping options, we expect online sales to remain at elevated levels moving forwards.
“The incredible demand for products online is adding to the stress our supply chains are under, so people need to consider shopping early for Christmas to ensure their products arrive on time.
“There’s a number of global and domestic issues at play, from the high cost of shipping to industrial action from port workers and delivery drivers. Retailers are used to navigating these challenges, which are likely to continue for the foreseeable future.”
