The latest retail spending data is in and the verdict from Commsec and the Australian Bureau of Statistics (ABS) is Aussie’s love a bargain, enjoy a coffee and have a lust for the latest tech.
In 2017 Australians spent over $311 billion on retail goods and activities such as food and clothing with spending at cafes and restaurants a high.
The retail apparel sector also benefited from consumer spending. Fuelled by a drop in clothing prices, consumer spending in retail was up by five per cent, with Aussies purchasing an array of shirts and shorts and dresses
Spurred on by our love for gadgets, Aussies bought over 8 per cent more electrical and electronic goods in the last quarter. Whilst a 6 per cent drop in prices in the electrical category also fuelled growth.
Commsec reports the data shows Aussie consumers are still in the mood for spending but are more likely to shop around. Total spending on retail goods and services rose by 2.7 per cent in 2017, which may seem like good news, however, it’s tempered by the fact that it is one of the slowest calendar-year for spending in the past 50 years.
Commsec suggests retailers will need to keep a lid on costs if they want to maintain growth.
“The pressure on retailers won’t let up anytime soon, especially with the entry of retailers such as Amazon. Retailers will need to keep costs controlled and focus on non-price strategies to drive spending such as differentiating on service, value for money or the quality or the retail offering,” the Commsec report states.