Oz Retailers To Feel Further Pain In 2019
Deloitte analysts expect local retailers to withstand further pain this year, citing sluggish wage growth and declining housing prices.
The advisory firm’s latest Retail Forecast report expects turnover to get even worse before rebounding – slipping to 1.6% this year.
Retail turnover is expected to rebound to 2.2% by 2020.
As per The Australian, Deloitte Partner and Author, David Rumbens, claims Australia’s retail sector previously achieved “reasonable” sales growth in an “unconventional way” – leveraging consumers’ willingness to spend, than income growth.
Consumer willingness to forgo savings is forecast to halt this year, influenced by a sluggish housing market.
Rumbens asserts many Aussie retailers have “survived” the last few years because customers chose to “live beyond our means.”
Latest Deloitte numbers claim spending growth has averaged 2.5% annually in the last five years, with household disposable income growth averaging 1.9% – a notable discrepancy.
Increased wage growth is forecast to lift retail turnover by 2020.