Australian retail sales volumes fell 0.6 per cent in the first three months of the year, following a 0.3 per cent fall in the December quarter.
This is according to figures released today by the Australian Bureau of Statistics, who credit the “mounting cost of living pressures” for the slide in household spending.
Retail sales volumes for household goods fell 3.7 per cent, the fifth consecutive fall, while other retail sales fell 0.8 per cent.
Food retailing was unchanged, after a 1.8 per cent rise last quarter.
Sales volumes increased for department stores by 1.5 per cent, and clothing, footwear and personal accessory retailing — up a modest 0.2 per cent — due to high promotional activity and heavy discounts throughout the quarter.
“Outside of the COVID-19 pandemic period, this is the largest fall in retail sales volumes since the September quarter 2009,” Ben Dorber, ABS head of retail statistics said.
Retail price growth slowed to 0.6 per cent this quarter.
“Retail prices rose for the sixth straight quarter, but price growth this quarter is the smallest since September 2021,” Dorber said.
“The slowdown in price growth was mainly due to discounts on clothing and large household items such as furniture and electronic goods, while food retailing prices continue rising.”
Food volumes have only increased 0.1 per cent, compared to a 6.9 per cent rise in retail prices.
“This means the turnover growth in food retailing we’ve seen each month over the past year, which includes price effects, has been driven by food inflation alone,” Dorber said.
