ABS: Retailers Hurt By Discount Pricing & Online Sales
The ABS’ Q3 CPI report reveals Aussie retailers have been hurt by fierce discount pricing and booming e-commerce – the adverse effects have only been enhanced by falling disposable income.
The Australian Bureau of Statistics (ABS) affirms Aussie consumers are spending less money than in the past, with weak household spending impacting the local retail industry’s total sales.
Heavy discounting and increased online competition – e.g. the growth of Kogan.com, eBay Australia and Amazon Australia – has caused the the ‘furniture’ segment to notch a quarterly price offset of -2.8%.
CPI price movement for the ‘furnishings, household equipment and services’ division dropped 0.4% for the Q3FY18 period – a further decrease from -0.1% for the same quarter last year.
According to NAB’s latest ‘Online Retail Sales’ report, 60% of Aussie retailers aim to increase their online operations in the next 24 months.
50% of NAB’s retail respondents reveal they won’t be expanding their brick-and-mortar operations in the next year, whilst most remain confident in their physical presence.