Retail trade springs back after warmer weather

Warmer-than average weather and Father’s Day sales spurred on an early spring blitz to the shops in a boost to retail figures.

Australian Bureau of Statistics figures showed retail spending grew 0.7 per cent in August and increased 3.1 per cent in the past year.

With higher temperatures prompting people to spend more time outdoors, the bureau’s head of business statistics Robert Ewing said it also led a rise in discretionary spending.

“This year was the warmest August on record since 1910, which saw more spending on items typically purchased in spring,” he said.

“This included summer clothing, liquor, outdoor dining, hardware, gardening items, camping goods and outdoor equipment.

“The lift in turnover from the warmer weather was also boosted by higher discretionary spending as consumers took advantage of Father’s Day sales events during the month.”

Department stores had the largest increase in retail trade outside of food off the back of Father’s Day sales, growing 1.6 per cent in the month.

Spending on clothing, footwear and personal accessories grew 1.5 per cent in the same time, while other retail grew by 1.3 per cent.

Households goods was the only sector that dropped in August, falling 0.3 per cent.

The warmer weather also resulted in a surge in people going out to eat.

“More people were out dining at cafes and restaurants enjoying the warm end to the winter months, which also boosted spending on alcohol consumed at home,” Mr Ewing said.

“While the eastern mainland states led the rises, most states and territories benefited from the earlier-than-usual spring temperatures, although some unseasonal rainfall over parts of Western Australia dampened sales slightly.”

Victoria and the Northern Territory led the way for retail sales, going up 0.9 per cent for the month, followed by Tasmania and the ACT at 0.8 per cent.

August’s bounce back for retail figures came after sluggish growth of just 0.1 per cent in July.

It comes as charities say they are experiencing an unprecedented surge in demand for essential non-food items, with eight in 10 saying need has increased.

According to a report from charity distributor Good360, 84 per cent expect the cost-of-living crisis to supercharge demand for these items in the coming year, with personal hygiene products, clothing and educational supplies topping the list.

Eastern Hills Community Pantry handed out $900,000 worth of items in 2023, with half being non-food related, manager Kerry Retallack said.

The Perth-based charity provides various non-food essentials including kitchen items, toiletries, clothing and toys.

“With toothbrushes, kids come in and go, ‘Mum, can we have a new toothbrush? They’ve got one here’, and you know they’ve been making do with an old one,” ,” Ms Retallack told AAP.

Struggling double-income earners are increasingly seeking help, but the issue is affecting Australians across the board amid skyrocketing rents and mortgages.

The figures represented a frightening trend for charities that were on their knees and unsure how to keep up with demand, Good360 managing director Alison Covington said.

More charities than ever are coming to her organisation asking for non-food aid and the managing director is asking for more government support.

“You can’t keep asking charities to do the work without funding them to do this good work,” Ms Covington said.

The report comes as the federal government announced a $15.8 billion surplus for the 2023/24 financial year, the second in two years.

Treasurer Jim Chalmers denied suggestions the economic achievement meant less support for people struggling financially.

 

Andrew Brown and William Ton
(Australian Associated Press)

 

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