Retailers in Search of Assistance as July Sales Stay Stagnant

Australian retailers are urging the government to support the industry as sales remained flat in July, but showed an increase from the previous year.

“In these challenging times, we are witnessing the ‘lipstick effect’ where individuals are finding ways to make their budget stretch further. In July, we observed a trend of people choosing to purchase food from supermarkets instead of dining out, allowing some wiggle room for spending on personal luxuries,” stated Paul Zahra, CEO of the Australian Retailer Association.

The National Retail Association (NRA) cautioned that without adequate government intervention, the weak consumer sentiment poses a threat to businesses, making it difficult for them to sustain operations.

“Many smaller retailers cannot afford to rely on heavy discounting strategies to stay afloat, and it is these businesses that are at risk of exiting the market,” noted Lindsay Carroll, NRA’s interim CEO.

“We urge policymakers to establish a more supportive environment for Australian businesses that encourages investment and provides a promising future for aspiring retail entrepreneurs.”

ARA and NRA made these remarks in response to data from the Australian Bureau of Statistics (ABS) indicating that retail turnover reached $36.2 billion (US$24.5 billion) in July 2024, showing no significant change from June figures but reflecting a 2.3 percent growth from July 2023.

Cosmetics, Sports, Recreational Goods Sales Witness Highest Annual Growth

The other retail segment, which includes cosmetics, sports, and recreational goods, saw a retail turnover of $5.66 billion, staying steady from June but increasing by 5.55 percent from the previous year.

Related Stories

Food sales totaled $14.44 billion, increasing by 0.2 percent from June and 3.2 percent from the previous year.

Household goods sales reached $5.82 billion, remaining unchanged from the previous month but growing by 1.5 percent year-over-year.

Clothing, footwear, and accessories sales dropped by 0.5 percent from June but rose by 0.5 percent from the same month last year to $2.98 billion.

Cafes, restaurants, and takeaway sales decreased by 0.2 percent from June and 0.3 percent from the previous year to $5.37 billion.

“Following increases in the past two months driven by mid-year sales, the higher retail turnover levels were sustained in July,” stated Ben Dorber, ABS head of retail statistics.

“The decrease in turnover for clothing and footwear retailers and department stores came after heightened spending during recent mid-year sales events. Household goods retailers maintained significant gains in turnover in recent months,” Dorber added.

NSW Books Highest Retail Turnover Year-on-Year

New South Wales recorded the highest retail turnover of $11.2 billion, marking a 1.2 percent increase, followed by Victoria, which saw a 2.3 percent growth to $9.32 billion.

Queensland sales surged by 3.3 percent to $7.46 billion, while South Australia grew by 4.2 percent to $2.32 billion, and Western Australia increased by 4.6 percent to $4.14 billion.