Monday 20 December 2021
Australian retail sales continue to strengthen in the lead up to Christmas, according to Mastercard SpendingPulse™, which measures in-store and online retail sales across all forms of payment.
Retail sales across the country increased 6.5% in November compared to the same time last year and are up 16.6% on pre-pandemic levels in 2019.
Clothing sales have bounced back strongly, up 18.9% compared to a year ago, with Household Goods (up 15%) the other strong performer. Despite recording a 12% increase in sales compared to the previous month, Department Store sales are down 4% compared to November 2020.
Victoria, NSW and the ACT continue to perform well after emerging from the Delta lockdowns as retailers capitalised on record breaking sales over Black Friday.
Australian Retailers Association CEO Paul Zahra said businesses have strong momentum with Christmas just five days away.
"Retail sales are continuing to accelerate in the run up to Christmas, and that's music to the ears of many retailers particularly small businesses who are looking to make up for the substantial trading losses they incurred during the Delta lockdowns," Mr Zahra said.
"There's a real buzz in the air at our major shopping destinations with people back out and about in droves. Consumer confidence is in positive territory, we had a record-breaking Black Friday, so all the signs are pointing to a buoyant Christmas trading period.
"The pent-up demand for shopping is set to continue in the post-Christmas sales as well with a record $21 billion to be spent in the three weeks from Boxing Day. Most of the borders are coming down, with the states and territories remaining committed to their reopening plans, so businesses have certainty which drives confidence and is critical at this time of year.
"Despite the upbeat trading conditions, the two significant issues retailers are dealing with right now are supply chain disruptions and staff shortages. Supply chains have been an issue for a while now, with domestic and global factors creating a perfect storm for retailers and consumers. Whilst we're now seeing the gradual return of international students and skilled migrants, staffing will remain a challenge with many businesses unable to trade at their full potential," Mr Zahra said.
Mastercard SpendingPulse™ reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check.
Mastercard SpendingPulse November 2021
Mastercard SpendingPulse™ reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check. As such, SpendingPulse™ insights do not in any way contain, reflect or relate to actual Mastercard operational or financial performance, or specific payment-card-issuer data.
