March shows a return to the ‘retail malaise’

Retail growth contracted to 2.3% YOY in March, seasonally adjusted, down from 3.6% in February, and negative 1% in real terms after accounting for CPI (Mar qtr 3.3%), proving the buoyancy of February at +3.6% was indeed an aberration. On a state basis, Victoria held up the national results with a strong result of 3.6%, and W.A. also helped with a buoyant 4.7%. NSW is a state of malaise, managing just 1.4% growth.

Just about all general merchandise categories suffered with Department Stores failing again –4.3%. Clothing managed to post a positive performance at +2.7%, but footwear declined by 3%.

Entertainment fell off a cliff with Other Recreation, which includes sports, media entertainment & toys & games at -10.7%.

Consumers also tightened up on eating out, with this generally buoyant category softening to 1.5% for cafes and restaurants and 2.8% for takeaway.

The electronics category also felt the brunt of the softer market at -3.2%, however the rest of the broader housewares category performed well with furniture and floor covering +3.7% and hardware +7%.

With price rises driving food inflation, supermarkets managed a respectable 3.4%. But, escaping the tightening of belts was liquor at 6.3%, as we softened the pain of curbing our spending.

If you would like to understand your category in more detail, your relative performance, or how to better engage your consumer, RetailOasis has extensive retail experience and can assist you with future business development based on rigorous quantitative analysis and insights. Contact Steve Kulmar or Nerida Jenkins at RetailOasis on +612 9976 6222 or follow the link below to order a report.







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