Despite a welcome reprieve last week from further interest rate rises, we remain concerned about the continued slow down in consumer spending.
Last week, the ABS revealed Australian retail sales volumes have fallen for a third consecutive quarter for the first time since 2008. The last time we saw three consecutive quarters of retail sales volume decline was in the Global Financial Crisis – which gives us a concerning insight into the current economic climate.
This falling demand comes at a time when wages, rents, insurance, utilities, supply chain and materials are all increasing in cost for retailers and we continue to highlight this challenge to government and to advocate for further restraint in future monetary decisions.
Another ongoing pressure point is the impact of retail crime. We’re keen to get your insights as we step up our ARA fight against retail crime and retail worker assaults. Please complete our surveys at the links in the newsletter below.
A bright spot on the near horizon is Fathers Day spending, with ARA research in collaboration with Roy Morgan showing Australians are set to splash out $860 million on Father’s Day gifts.
The spending forecasts are marginally down on last year, which is somewhat predictable given the current cost of living crisis. This year, 35% of Australians plan to buy a gift for Father’s Day (down 1% from 2022), spending an average of $112 per person (down $1 from 2022). More here.
As we head towards the all-important Christmas trading season, we are delighted to see the return of our leading expert panel for the annual Christmas Insights Breakfast in Sydney on 12 October which is proudly supported by Afterpay. This insightful event was a sell-out last year, so be quick. Tickets here.
Don’t forget to get in early for our agenda-setting event for 2024, the ARA Leaders Forum. You’ll save hundreds of dollars if you purchase tickets for your team now for this spectacular two-day event, and will ensure your spot in the room with an all-star lineup of retail leaders you simply won’t see anywhere else. Details here.
