Tuesday 29 March 2022
Australian retail trade continued its robust performance in February, with overall sales rising 9.1% year on year for the month of February, according to the Australian Bureau of Statistics (ABS) data released today.
Clothing, footwear and personal accessories led the upswing with a 17.8% increase compared to February 2021, followed by cafes, restaurants and takeaway food (up 15.9%) and household goods (up 8.1%). Departments stores saw the first increase in many months (up 5%), followed by food retailing which remained strong up 4.3% year on year.
Victoria led the states and territories with 13.1% year on year growth, followed by Western Australia (up 10.5%) and NSW (up 8.5%).
ARA CEO Paul Zahra said it's pleasing that retail trade remains on a strong trajectory overall despite ongoing disruption to supply chains.
"It's encouraging to see Department stores starting to see some growth after many months of decline, as well as the continued uplift in fashion and hospitality - two categories that have been deeply impacted by Covid.
"Whilst these numbers can give us cautious optimism about the year ahead, small businesses are facing their own unique set of challenges which cannot be ignored. CBD and travel retailers continue to face significant pressures, and we are mindful of ongoing volatility in our economy.
"Business costs are increasing, there's inflationary pressures and staff shortages, while supply chain delays and costs are continuing to bite. Business disruption is very much an ongoing concern with the Ukraine conflict abroad creating a ripple of cost pressures for retailers and customers and at home flooding has displaced thousands of Australians and impacted many businesses.
"Small businesses feel these impacts more given they don't have the same level of resources or cash reserves to cope with the uncertain economic environment.
Mr Zahra said the ARA forecast for Easter trading is positive.
"Looking ahead, the Easter long weekend will be the first holiday period in two years where people will be travelling largely free of Covid rules and border restrictions. Our research shows Australians will be spending $7.1 billion on trips away, with around $1.5 billion to be spent on food and chocolates. With the economy opening, people have been able to book local holidays with confidence and that's set to be a major boost to tourism operators and local retailers who are heavily reliant on the visitor dollar.
Retail category performance
State and territory performance
