Invest
Lockdowns take toll on retail trade
Lockdowns hurt retailers in June, but the big picture trends around consumer spending tell a different story.
Lockdowns take toll on retail trade
Lockdowns hurt retailers in June, but the big picture trends around consumer spending tell a different story.
Recent lockdowns in Greater Sydney and Victoria have coincided with a fall in Australia’s retail turnover.
New figures released this week by the Australian Bureau of Statistics have revealed that Australia’s retail turnover rate slipped 1.8 per cent in June 2021.
Ben James, the ABS’ director of quarterly economy wide surveys, attributed the fall in sales activity “to the impact of coronavirus restrictions across multiple states”.
Victoria was the worst affected with a fall of 3.5 per cent in retail turnover, NSW followed behind at 2 per cent.
While Queensland didn’t quite go into lockdown, the ABS found that retail turnover was still down 1.5 per cent “due to stay-at-home restrictions and reduced interstate mobility”.
“Other states and territories saw interrupted trade due to mini lockdowns, as well as reduced mobility between states with the tightening of border restrictions,” they said.
The ABS’ findings line up with similar findings during June by the Commonwealth Bank of Australia.
CBA’s most recent Household Spending Intentions report found that retail spending intentions “softened” in June relative to the previous year, “continuing the high level of volatility seen in recent months”.
CBA chief economist Stephen Halmarick said that in addition to recent lockdowns, these trends also factor in “the pick-up in spending as the country came out of the initial lockdown last year”.
Mr Halmarick also noted the overall increase in spending intentions relative to 2019. Specifically, he cited increases in consumer spending on health, fitness and education relative to the pre-pandemic.
“Comparing June 2021 to June 2019 showed a much stronger picture, with a solid increase across most retail spending categories. This included spending on: clothing and footwear, bakeries, grocery stores and supermarkets, department stores, household furniture and equipment, pharmacies, personal care and recreation,” the report said.
According to Mr Halmarick, there was also an uptick when it came to spending on “commercial and professional sports and club memberships” amid changes to restrictions in June and the ability by consumers to attend relevant events and venues.
Unfortunately, “this has changed again in July with the lockdowns in Greater Sydney and Melbourne”.
RELATED ARTICLES
About the author
About the author
Economy
Inflation concerns rise as Australia's CPI climbs to 3.8% in October
Australia's latest Consumer Price Index (CPI) figures have sent ripples through the economy, with headline inflation accelerating to 3.8% year-on-year in October, up from 3.6% in September. The data, ...Read more
Economy
October CPI results pose challenges for RBA’s monetary policy stance
In a surprising turn of events, the October Consumer Price Index (CPI) data has raised eyebrows among economists and market strategists, revealing stronger-than-expected inflationary pressures in ...Read more
Economy
Global deal activity declines by 6% amid economic uncertainty, reports GlobalData
In a year characterised by economic turbulence and evolving market conditions, global deal activity has witnessed a notable downturn during the first ten months of 2025. According to GlobalData, a ...Read more
Economy
Australia’s softening labour market puts another RBA cut in play — here’s what business should do now
A four-year high in unemployment has revived expectations the Reserve Bank could deliver another rate cut as soon as November. With quarterly GDP growth running at 0.6 per cent and annual growth at ...Read more
Economy
Rising CPI reinforces RBA’s stance as rate cut expectations remain: State Street
State Street Global Advisors says the Reserve Bank of Australia (RBA) is likely to hold its current policy outlook following the release of September quarter inflation data, which showed an unexpected ...Read more
Economy
NSW SES boosts tsunami preparedness ahead of World Tsunami Awareness Day
As World Tsunami Awareness Day approaches on 5 November, the New South Wales State Emergency Service (NSW SES) is ramping up efforts to enhance tsunami preparedness along the east coastRead more
Economy
Lifesaving Regional Response Strengthened with New NSW SES Vehicles
In a significant boost to regional emergency services, the NSW State Emergency Service (SES) has unveiled 11 new Community First Response (CFR) vehicles, designed to enhance the speed and safety of ...Read more
Economy
Australia's June quarter GDP growth driven by consumer and government spending
Australia's economy has shown unexpected resilience in the June 2025 quarter, with household and government consumption driving growth despite a significant decline in public investmentRead more
Economy
Inflation concerns rise as Australia's CPI climbs to 3.8% in October
Australia's latest Consumer Price Index (CPI) figures have sent ripples through the economy, with headline inflation accelerating to 3.8% year-on-year in October, up from 3.6% in September. The data, ...Read more
Economy
October CPI results pose challenges for RBA’s monetary policy stance
In a surprising turn of events, the October Consumer Price Index (CPI) data has raised eyebrows among economists and market strategists, revealing stronger-than-expected inflationary pressures in ...Read more
Economy
Global deal activity declines by 6% amid economic uncertainty, reports GlobalData
In a year characterised by economic turbulence and evolving market conditions, global deal activity has witnessed a notable downturn during the first ten months of 2025. According to GlobalData, a ...Read more
Economy
Australia’s softening labour market puts another RBA cut in play — here’s what business should do now
A four-year high in unemployment has revived expectations the Reserve Bank could deliver another rate cut as soon as November. With quarterly GDP growth running at 0.6 per cent and annual growth at ...Read more
Economy
Rising CPI reinforces RBA’s stance as rate cut expectations remain: State Street
State Street Global Advisors says the Reserve Bank of Australia (RBA) is likely to hold its current policy outlook following the release of September quarter inflation data, which showed an unexpected ...Read more
Economy
NSW SES boosts tsunami preparedness ahead of World Tsunami Awareness Day
As World Tsunami Awareness Day approaches on 5 November, the New South Wales State Emergency Service (NSW SES) is ramping up efforts to enhance tsunami preparedness along the east coastRead more
Economy
Lifesaving Regional Response Strengthened with New NSW SES Vehicles
In a significant boost to regional emergency services, the NSW State Emergency Service (SES) has unveiled 11 new Community First Response (CFR) vehicles, designed to enhance the speed and safety of ...Read more
Economy
Australia's June quarter GDP growth driven by consumer and government spending
Australia's economy has shown unexpected resilience in the June 2025 quarter, with household and government consumption driving growth despite a significant decline in public investmentRead more
