Australia’s retail sector finished the 2013-14 financial year strongly, recovering in June from a post-federal budget downturn.
Australian Retail Index (ARI) figures released showed steady growth of 4.1% in June. BDO’s National Retail Lead Partner Simon Scalzo said shoppers were quick to forget their budget concerns and return with confidence. “This increased activity coincided with the launch of the midyear stocktake sales period, with sales up 18.4% per cent in the last two weeks of June,” Mr Scalzo said.
However, if history is anything to go by, retailers should expect activity to be short lived over the remaining cooler months, with historic consumer confidence showing a dip in sales between August and October.
“According to the ARI, furniture & homewares retailers experienced the greatest stability across the financial year, thanks to the activity in the housing market, while those in fashion & accessories and other general retail experienced the greatest volatility.”
Retail Express CEO Aaron Blackman said retailers have continued to invest in their businesses over the last three months, with sales of software increasing steadily. “This is a great sign as it indicates a feeling of positivity from retailers,” Mr Blackman said. “Our retail clients typically see a decline in sales during the third quarter of each year, with the exception being winter-related businesses such as sporting goods. Sales generally begin to increase again around the September school holiday period.”
Visit www.retailexpress.com.au or call 1300 732 618
Aaron Blackman is the CEO of Retail Express. Follow Aaron on Google+
The Australian Retail Index at www.australianretailindex.com.au provides week-by-week sales monitoring, across four key categories – fashion & accessories, furniture & homewares, sporting & recreational goods and other general retail.
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Date of Post: 2014-07-25