Retailers have urged the Reserve Bank of Australia to cut interest rates in February after successful Black Friday/Cyber Monday sales in November.
According to the Australian Bureau of Statistics (ABS), retail turnover rose by 3 per cent compared with the same time last year.
National Retail Association (NRA) Acting CEO Lindsay Carroll said that positive November sales are a sign that consumer sentiment is healing, but it’s also a sign that Aussies won’t pass up a bargain.
“Discretionary retailers at department stores (+1.8%) and clothing, footwear, and personal accessory retailing (+1.6%) saw a much-needed boost in spending,” Ms Carroll said.
“Discretionary spending was slack all through last year, so this boost is invaluable to retailers who rely on this spending category to get by.
“Food (+0.5%) and hospitality (+1.5%) took advantage of the Black Friday buzz, offering discounts and loyalty points incentives.
“We predict consumers will go back to conservative spending post-Christmas, and the holiday season sales boost isn’t enough to carry businesses through to the quieter months of the year.
“Inflation is currently sitting within the prescribed range of the RBA. We think the Reserve Bank should consider starting the year off with a rate cut when spending is slow to bolster struggling retailers.
“The Northern Territory (1.6%) and Queensland (1.2%) saw the largest growth in spending compared to last month. Surprisingly, New South Wales grew by a paltry 0.5 per cent and Victoria by 0.8 per cent.”
The National Retail Association represents more than 60,000 stores across Australia. It has been serving businesses in the retail and fast-food sectors for close to 100 years.
For more information, phone the National Retail Association media unit on 0467 792 013.