Australia’s retail sales have taken a nosedive with overall sales falling 2.7% in December, several key retailers including JB Hi Fi are set to report their latest financials in February.
According to sources a large bulk of consumer spending that would normally occur in December happened during Novembers Black Friday.
Data from the Australian Bureau of Statistics, reveal that retail turnover fell 2.7 per cent in December, compared to a 1.7 per cent decline those markets had expected prior to the release of official data.
A monthly decline of 2.7 per cent is the worst result for the series since a 4.2 per cent drop in August 2020 when Melbourne was subject to strict lockdowns that forced many industries to pause as a result of Covid-19.
ABS head of retail statistics Ben Dorber said the December fall was caused by a drop in discretionary spending as shoppers shifted forward much of their Christmas spending to November because of Black Friday.
Several CE retailers told ChannelNews that Boxing Day sales were more about appliances than CE products.
“This shift in spending from December to November reflects the growing popularity of Black Friday sales and the impact of cost-of-living pressures, with consumers seeking out bargains and taking advantage of discounts in November,” he said.
Total monthly turnover was $35.19bn seasonally adjusted in December, compared to $36.15bn in the previous month. Seasonally adjusted figures show that retail turnover was up 0.8 per cent in the 12 months to December.
Mr Dorber said that trend results for December showed retail turnover increased 0.1 per cent.
“It shows that underlying retail spending remains subdued when we look through the volatile movements over recent months in the lead up to Christmas,” he said.
Turnover fell in all the non-food industries that had been boosted by Black Friday sales in November. Household goods retailing had the largest decline at 8.5 per cent, following the largest rise last month.
Department stores also recorded a sharp retreat in spending at 8.1 per cent, followed by clothing footwear and personal accessory retailing (-5.7 per cent), and other retailing (-1.1 per cent).
“Retailers told us that trading conditions were slow in early December following the success of Black Friday before picking up again in the lead up to Christmas and Boxing Day sales where discounting activity returned,” Mr Dorber said.
For food-related industries, turnover fell by 1.1 per cent in cafes, restaurants and takeaway food services, while food retailing was the only industry to rise, up 0.1 per cent, as households stocked up on Christmas products.
Retail turnover fell across the country, with Western Australian and the ACT down by 3.8 per cent, followed by Victoria at 3.2 per cent. Tasmania had the smallest decrease at 0.3 per cent.
