In December 2022, retail sales dropped 4 per cent despite the Christmas shopping spend.
Ben Dorber, ABS head of retail statistics, said looking through this volatility showed that turnover is at a similar level to September 2022, and, on average, growth has been flat over the past few months.
“November, December and January are the most seasonal months of the year, with retail activity heavily affected by the Christmas period and January holidays,” he said.
“This has been heightened by an increase in the popularity of Black Friday sales and growing cost of living pressures combining to drive a change in usual consumer spending patterns.”
Turnover rose in all industries, driven mainly by non-food industries rebounding from large falls in December. Department stores had the largest rise (8.8 per cent), followed by clothing, footwear, and personal accessory retailing (6.5 per cent); other retailing (2.9 per cent); and household goods retailing (1.1 per cent).
Cafes, restaurants, and takeaway food services rose (1.2 per cent) to a new record high level following slowing growth in recent months.
“The continued return of large-scale sporting and cultural events in January, combined with high costs reflected in prices, has boosted sales in catering services which are part of the cafes, restaurants and takeaway food services industry,” Mr Dorber said.
Food retailing had the smallest rise (0.3 per cent).
The Australian Retailers Association said the January figures are an increase of 7.5 per cent on the same time the previous year.
Shoppers celebrated the new year in their stride, spending more than $35 billion across the country.
ARA chief executive Paul Zahra said while the sales results remain impressive, the cost of doing business and gross margins for many retailers remains a serious concern.
“The sales data is a strong result, particularly for apparel traders and department stores who have worked hard to clear their summer inventory,” he said.
“There’s no doubt that an impressive Boxing Day trade certainly bolstered these sales, with the shoppathon a fixture on the January calendar.
“The sales recorded by restaurants and cafes are particularly strong and it’s clear the appetite for dining out has been boosted after the challenges of the pandemic.”
