Australian retail sales fall 0.5% in June quarter 2023

While volumes have fallen, retail prices, based on data from the consumer price index, have risen 0.9 per cent this quarter, an increase from 0.7 per cent in March. This marks the seventh straight quarter of growth in retail prices, though growth has eased from 2022, the Australian Bureau of Statistics (ABS) said in a press release.

Clothing, footwear, and personal accessory retailing recorded a 1.1 per cent rise, aided by promotional activities and discounting.

The figures revealed a geographical divide with the five eastern states and territories experiencing a fall in volumes, while the Northern Territory, Western Australia, and South Australia saw an increase.

Additionally, the report provided insight into the online retailing sector, showing total online retail sales were $3,963.4 million in June 2023, with a seasonally adjusted increase of 0.6 per cent. The proportion of online sales to total retailing rose to 11.0 per cent, the highest since November 2022.

Ben Dorber, ABS head of retail statistics, attributed the fall to consumers pulling back on spending in response to cost-of-living pressures. He highlighted that this was the first time since 2008 that retail sales volumes have recorded three consecutive quarterly falls.

“Retail sales volumes are down 1.4 per cent compared to the June quarter last year. Outside of the pandemic period, this is the first time since 1991 that sales volumes have fallen compared to the previous year,” he said.

ALCHEMPro News Desk (NB)