Invest
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.
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.
The latest economic data released by the National Australia Bank has shown that consumer spending in cafes, bars and restaurants in Australia’s two largest cities is well below pre-COVID-19 levels.
“Melbourne CBD cafe, restaurant and takeaway spending remains 50 per cent down on year-ago levels; while pubs are off 57 per cent; accommodation, 69 per cent; and department stores, 29 per cent,” NAB’s group chief economist, Alan Oster, said.
However, those who are stepping out are likely to be purchasing new outfits prior as clothing and footwear spending in Melbourne CBD was up 5 per cent on year-ago levels last week.
Sydney saw a series of coronavirus outbreaks from July, but avoided a widespread outbreak and did not impose harsh restrictions on activity.
While Sydney avoided a second lockdown and the restrictions Melbourne was forced to put in place, the hospitality sector still felt the brunt of lockdowns.
“Nonetheless, occupancies at Sydney CBD offices continue to be impacted as many companies have held back sending all their staff back into city offices. Sydney CBD spending has been hit hard and remains below year-ago levels. Cafes, restaurants and takeaways are down 24 per cent compared to a year ago, while pubs are off 41 per cent,” Mr Oster continued.
According to the big four bank, these sectors are unlikely to recover while Australians continue to work from home.
“While working-from-home restrictions are scheduled to ease further in Victoria in the new year, many (but by no means all) office workers across many parts of Australia have become accustomed to working from home and may not rush to return,” Mr Oster said.
The report said this is likely to be an ongoing drag on CBD spending, but could act as a tailwind for suburbs, with many seeing a boom in spending due to changing working conditions.
About the author
About the author
Spending
What did Aussies spend their super on?
Aussies who took advantage of the controversial early access to super scheme spent the majority of their money on mortgages, rent and household bills, with just one in eight saving their super for a r...Read more
Spending
Consumer spending set to boost economic recovery
Australia’s recovery from the COVID-19 downturn looks to be buoyed by a wave of consumer spending, as Aussies increase their spending habits post-lockdown restrictions, new studies have revealed. ...Read more
Spending
Trans-Tasman border open for the first time in nearly 400 days
Quarantine-free travel between Australia and New Zealand has restarted for the first time in over a year, with the Prime Minister pointing to a further expansion of the bubble. ...Read more
Spending
Google found to ‘partially’ mislead consumers
Google has “partially” misled consumers by collecting some data on Android and Pixel phones even after the customer ticked “No” or “Do not collect”, a court has found. ...Read more
Spending
Energy prices fall – how you can cash in on the $900m saving
Households are being urged to check the price they are paying for electricity after it was revealed that prices across the eastern seaboard have fallen significantly in the back half of 2020, official...Read more
Spending
Aussies choose to shop local in pandemic recovery
Australians are increasingly turning their attention to homegrown businesses and brands as they look to help the country recover from its first economic downturn in nearly three decades, new research ...Read more
Spending
Awareness of BNPL surges as consumers look for alternative credit
Consumer awareness of buy now, pay later services, including AfterPay and Zip, continues to grow as Aussies look for alternative ways to make purchases. ...Read more
Spending
Tap for Uber, share bike in world-first trial
The NSW government has announced that thousands of Sydney commuters will be able to pay for various modes of transportation through their Opal cards, receiving discounts in the process. ...Read more
Is the market overheating; should ETFs take your fancy, and what’s happening to the low and middle income tax offset?
Listen now
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now
Spending
What did Aussies spend their super on?
Aussies who took advantage of the controversial early access to super scheme spent the majority of their money on mortgages, rent and household bills, with just one in eight saving their super for a r...Read more
Spending
Consumer spending set to boost economic recovery
Australia’s recovery from the COVID-19 downturn looks to be buoyed by a wave of consumer spending, as Aussies increase their spending habits post-lockdown restrictions, new studies have revealed. ...Read more
Spending
Trans-Tasman border open for the first time in nearly 400 days
Quarantine-free travel between Australia and New Zealand has restarted for the first time in over a year, with the Prime Minister pointing to a further expansion of the bubble. ...Read more
Spending
Google found to ‘partially’ mislead consumers
Google has “partially” misled consumers by collecting some data on Android and Pixel phones even after the customer ticked “No” or “Do not collect”, a court has found. ...Read more
Spending
Energy prices fall – how you can cash in on the $900m saving
Households are being urged to check the price they are paying for electricity after it was revealed that prices across the eastern seaboard have fallen significantly in the back half of 2020, official...Read more
Spending
Aussies choose to shop local in pandemic recovery
Australians are increasingly turning their attention to homegrown businesses and brands as they look to help the country recover from its first economic downturn in nearly three decades, new research ...Read more
Spending
Awareness of BNPL surges as consumers look for alternative credit
Consumer awareness of buy now, pay later services, including AfterPay and Zip, continues to grow as Aussies look for alternative ways to make purchases. ...Read more
Spending
Tap for Uber, share bike in world-first trial
The NSW government has announced that thousands of Sydney commuters will be able to pay for various modes of transportation through their Opal cards, receiving discounts in the process. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
