Invest
Retail sales soar in May
Retail sales have grown by nearly 17 per cent for the month of May as COVID-19 restrictions eased, allowing retailers that previously closed to reopen their doors.
Retail sales soar in May
Retail sales have grown by nearly 17 per cent for the month of May as COVID-19 restrictions eased, allowing retailers that previously closed to reopen their doors.
Seasonally adjusted data from the ABS has shown a 16.9 per cent spike in sales following a low in April.
“The gradual easing of social distancing regulations and the reopening of physical stores bolstered retail trade in May,” said Ben James, director of Quarterly Economy Wide Surveys.
“Retailers across a range of industries reported high numbers of consumers returning to stores, with some retailers noting levels similar to those seen in December.”
There were large month-on-month rises in clothing, footwear and personal accessory retailing (129.2 per cent), and cafes, restaurants and takeaway food services (30.3 per cent), with both industries coming off very low levels of trade in April. Levels in these industries remain well below the same time last year.
Food retailing (7.2 per cent), household goods retailing (16.6 per cent), department stores (44.4 per cent) and other retailing (9.4 per cent) all recorded month-on-month rises in seasonally adjusted terms and are now at levels well above the same time last year. Retailers reported themes of continued spend on home improvements and high demand for recreational goods.
However, UBS notes the bounce mostly favoured larger retailers, which continue to dominate the market.
“Importantly, large listed retailers continue to take share and rose to a record 75.6 per cent of total retail sales. While small retailers bounced, they remained in deep contraction,” UBS economist George Tharenou said.
UBS predicts the stronger growth to continue into the next month as foot traffic increases due to more retailers opening their stores.
“Looking forward to June, discretionary retail foot traffic has continued to improve, tracking down 26.6 per cent in June after -42.5 per cent in May and -82.3 per cent in April, but the improvement has slowed sharply since early June.”
“Similarly, Google mobility data for retail showed a sharp improvement from May to June (averaging -17.5 per cent after -29.7 per cent), but has recently plateaued ~15 per cent below the baseline. This suggests that the pace of improvement in retail sales and consumer spending has peaked,” Mr Tharenou concluded.
About the author
About the author
Spending
Toyota returns $18m in JobKeeper payments
An unexpected surge in sales in 2020 has inspired car manufacturer Toyota to write an $18 million check to the government, returning the amount it received in JobKeeper subsidies and touting the move...Read more
Spending
Aussies spend up big during pre-Christmas sales
Consumers have taken advantage of new freedoms post-lockdown and pre-Christmas discounts as retail sales soared in November, official figures have revealed. ...Read more
Spending
Aussies unlikely to splash the cash following pandemic
Australian consumers are likely to cut back on discretionary items in 2021 with many re-evaluating their spending habits following the COVID-19 pandemic, new research has revealed. ...Read more
Spending
‘It’s back’: SA unveils second Great State Voucher
South Australian residences or those planning to travel to the state could save up to $150 as the government continues its support for the local tourism sector. ...Read more
Spending
Rise in health premiums at 20-year low, but there’s a catch
While the Australian government’s health insurance reforms have resulted in the lowest annual average premium change since 2001, according to experts consumers could still see a “whacking” prem...Read more
Spending
Young Aussies pressured to buy love this Christmas
Younger Australians are likely to spend more this Christmas as they equate expensive gifts with love, a researcher has found. ...Read more
Spending
Buying local this Christmas could raise over $1bn for small business
New research suggests that Australians could deliver an estimated $1.12 billion to the small-business sector this Christmas just by buying one more gift from their favourite local business. ...Read more
Spending
WFH sees CBD pubs’ profits halve
Despite a lift in consumer spending, the easing of restrictions has not translated into a boom for the hospitality sectors in NSW and Victoria, a big four bank has revealed. ...Read more
Spending
Toyota returns $18m in JobKeeper payments
An unexpected surge in sales in 2020 has inspired car manufacturer Toyota to write an $18 million check to the government, returning the amount it received in JobKeeper subsidies and touting the move...Read more
Spending
Aussies spend up big during pre-Christmas sales
Consumers have taken advantage of new freedoms post-lockdown and pre-Christmas discounts as retail sales soared in November, official figures have revealed. ...Read more
Spending
Aussies unlikely to splash the cash following pandemic
Australian consumers are likely to cut back on discretionary items in 2021 with many re-evaluating their spending habits following the COVID-19 pandemic, new research has revealed. ...Read more
Spending
‘It’s back’: SA unveils second Great State Voucher
South Australian residences or those planning to travel to the state could save up to $150 as the government continues its support for the local tourism sector. ...Read more
Spending
Rise in health premiums at 20-year low, but there’s a catch
While the Australian government’s health insurance reforms have resulted in the lowest annual average premium change since 2001, according to experts consumers could still see a “whacking” prem...Read more
Spending
Young Aussies pressured to buy love this Christmas
Younger Australians are likely to spend more this Christmas as they equate expensive gifts with love, a researcher has found. ...Read more
Spending
Buying local this Christmas could raise over $1bn for small business
New research suggests that Australians could deliver an estimated $1.12 billion to the small-business sector this Christmas just by buying one more gift from their favourite local business. ...Read more
Spending
WFH sees CBD pubs’ profits halve
Despite a lift in consumer spending, the easing of restrictions has not translated into a boom for the hospitality sectors in NSW and Victoria, a big four bank has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
