Retail volumes rise as consumers chase bargains
Australian retail sales volumes rose 0.3 per cent (seasonally adjusted) in December quarter 2023, according to figures released today by the Australian Bureau of Statistics (ABS).
This follows a revised fall of 0.1 per cent in September quarter 2023 and a fall of 1.1 per cent in June quarter 2023.
Ben Dorber, ABS head of retail statistics, said: “The rise in December retail sales volumes was supported by lower price growth for retail goods. Consumers particularly took advantage of discounting for discretionary items like furniture and electronic goods.”
Despite the rise, retail sales volumes were down 1.0 per cent compared to December quarter 2022.
Trend estimates from March 2020 to June 2022 are not available due to the degree of disruption and volatility caused by COVID-19. Trend estimates throughout the pandemic period are likely to be unhelpful and potentially misleading for users in interpreting underlying trend in retail activity.
Retail volumes on a per capita basis (-0.3 per cent) fell for a sixth straight quarter, down 3.5 per cent compared to this time last year.
“Removing the effects of strong population and price growth clearly shows how consumers have responded to cost-of-living pressures. Sales volumes per person have fallen every quarter since reaching a peak in June 2022, although they remain above pre-pandemic levels,” Mr Dorber said.
Trend estimates from March 2020 to June 2022 are not available due to the degree of disruption and volatility caused by COVID-19. Trend estimates throughout the pandemic period are likely to be unhelpful and potentially misleading for users in interpreting underlying trend in retail activity.
Retail price growth (0.1 per cent) slowed this quarter, down from 0.6 per cent in the September quarter, based on data from the latest Consumer Price Index. This is the smallest quarterly retail price rise since September quarter 2021.
“Compared to the same time last year, retail prices rose 2.4 per cent, down considerably from the peak of 7.6 per cent in December quarter 2022,” Mr Dorber said.
The rise in volumes was driven mostly by the non-food related industries. Of these industries, household goods retailing (2.3 per cent) had the largest rise, followed by other retailing (0.4 per cent), and department stores (0.2 per cent).
Clothing, footwear and personal accessory retailing (-1.6 per cent) was the only non-food industry to record a fall. This was the second quarterly fall in a row; however, retail volumes are up 0.5 per cent compared to the same time last year.
Food retailing rose 0.5 per cent, following two straight quarterly falls. The rise in food volumes has been supported by easing food price growth (0.6 per cent), down from 0.8 per cent last quarter.
Cafes, restaurants and takeaway food services fell 2.1 per cent. It is the third straight quarterly fall and largest since September quarter 2021. Volumes continue to fall from previously high levels.
Most states and territories recorded a rise in retail volumes this quarter. Victoria (-0.5 per cent) was the only state to record a fall, while the Australian Capital Territory remained unchanged.
More detailed industry and state analysis and further information on the statistical methodology is available in Retail Trade, Australia.
The ABS would like to thank businesses for their continued support in responding to our surveys.
Media notes
- Today's release of Retail Trade follows the initial release of December monthly data, and provides more information on the December reference period, including quarterly price and volume data.
- Volume estimates measure changes in value after the direct effects of price changes have been removed. See chain volume measures for more details.
- Revisions to the seasonally adjusted quarterly estimates reflect improvements in the seasonally adjusted data as the evolving seasonal pattern becomes clearer. The larger than usual revisions reflect improvements in measuring the impact of Black Friday sales on seasonally adjusted data. For further information, please refer to the article released last month explaining the effect of changes in the seasonality of retail turnover and the seasonality in retail turnover section of survey impacts and changes.
- Seasonal adjustment is the process of estimating and removing seasonal effects to allow comparison of data for adjacent months. See methodology for more details.
- The trend series attempts to measure underlying behaviour in retail activity. It is recommended that trend estimates be used alongside the seasonally adjusted headline measure to analyse and understand underlying activity in retail spending over the longer term. See methodology for more details on trend estimates.
- A media statement on Thursday 23 November 2023 announced that the ABS would be ceasing the publication of Retail Trade, Australia in August 2025. For more information, please visit the Future cessation of the Retail Business Survey and Retail Trade Publication webpage.
- When reporting ABS data you must attribute the Australian Bureau of Statistics (or the ABS) as the source.
- For media requests and interviews, contact the ABS Media Team via media@abs.gov.au (8.30am-5pm Mon-Fri).
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