Aussie retailers worry about Christmas sales
Retailers would have to double, if not triple, their efforts to get customers through the doors and confident to shop before any Christmas cheer returns to the sector, the industry body said today.
According to the Australian National Retailers Association, retailers are shivering as shoppers give them the cold shoulder, choosing to put their money into saving, mortgage repayments and utility bills as retail figures took a tumble into negative territory in October, the first drop in seven months.
ANRA chief executive Margy Osmond said the 1.1 per cent drop in the figures wipe out the modest gains made in the sector since June.
"Effectively these figures take retail back to the winter of our discontent, particularly in restaurants and takeaway and the clothing sector.
"These figures go against all the indicators we normally rely on to see growth - people are employed, the economy is growing and the Australian dollar is flying high.
"October was also the last month before interest rates went up which will have retailers crying into their coffee mugs today as they head for a quiet Christmas."
Mrs Osmond said the weather may have had some impact, particularly on clothing spending. The sector took a 4.6 per cent drop in October, and with wet weather continuing around the country, that number is unlikely to rise in November.
"Even with the cafe sector removed, which has accounted for much of the growth in recent months, the retail sector takes a hit of -0.5 per cent. That is a significant hit to businesses and will only spell further trouble in retailing's ability to recover completely.
"Average growth in retail year on year should be around 6 per cent in the 12 months to October retail has seen a 2.2 per cent increase, leaving retailers little to celebrate this Christmas.
"Clearly the retail sector is weak and while there may be a slight upward blip come December, consumers are voting with their feet and keeping their wallets zipped up tight.