No Retail Bounce - Retail Sales Dead Flat

No Retail Bounce Retail Sales Dead Flat

Retail trade figures for the September quarter released today confirm that recovery in the retail sector hinges on a strong Christmas season.

"The September quarter saw retail sales rise by just 0.1 per cent. This is a very disappointing result which does not bode well for the national economy in 2009, said ANRA Chief Executive Margy Osmond.

"The retail sector needs a circuit-breaker and Christmas is the best opportunity.

"After two quarters of falling sales, retailers had hoped to see the first signs of a recovery in the September quarter figures.

"The June quarter was a grim time for retailers. Consumer spending fell for the first time since 1993. Consumer confidence fell to levels not seen since the recession of the early 1990s. But, it was hoped, the sector had hit bottom.

"The September retail figures show no signs of an imminent recovery.

"In June, consumers were hit hard by rising fuel prices and interest rates. Now consumer confidence is being battered by fears of rising unemployment and economic slowdown.

"A great concern is the fact that our largest State is in a retail recession New South Wales has recorded two consecutive quarters of negative growth (following no growth in the March 2008 quarter).

"The picture elsewhere is more positive but with some risks as well. Sales in Victoria and Queensland are respectable but trending downwards. South Australia, Western Australia and Tasmania are continuing to sustain solid growth. The ACT is performing poorly.

"The consolation for retailers today is that we are yet to see the impact on consumer spending of the last two interest rate cuts. It remains to be seen whether consumer sentiment will become more positive following the 1.75 per cent rate cut and the announcement of the Government's stimulus package"
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For media inquiries, contact:
Malcolm Roberts
0419835218
[email protected]
www.anra.com.au

SOURCE: Australian National Retailers Association