Retail sales lose steam in December 2020, ABS data shows

Retail sales lost steam in December, with spending across the country falling 4.1 per cent and 2 per cent in WA, following a strong lift the previous month. The latest Australian Bureau of Statistics figures are in stark contrast to the November result, when sales jumped 7.1 per cent. They also increased by 1.2 per cent in WA that month. “Victoria (down 6.8 per cent) led falls at the State and Territory level following stronger trade in November as COVID-19 restrictions eased,” Ben James, ABS director of quarterly economy wide surveys, said. “NSW (down 4.9 per cent) also fell as the Northern Beaches cluster impacted spending in the lead-up to Christmas.” But despite the falls, retail sales across the country were still up 9.6 per cent on December the previous year. And turnover was up 2.5 per cent over the December quarter as a whole. Australian Retailers Association chief executive Paul Zahra said the result showed the economic recovery was tracking well, despite the COVID-19 threat still lingering. “There’s a lot of momentum in the market,” he said. “Whilst we don’t expect a fiscal cliff, we are expecting sales to soften in 2021. JobKeeper and the JobSeeker coronavirus supplement are due to end in March, and that may have an impact on consumer spending. “As we’ve seen recently in WA and Victoria, things are very unpredictable at the moment. Governments are imposing restrictions and lockdowns with little to no notice as new COVID cases emerge, and that has an impact on business and consumer confidence.” Following the large rise in November, five of the six industries declined in December. Department stores were hit the hardest, recording a 12.5 per cent drop in sales. Household goods retailing was down 8.3 per cent, and clothing, footwear and personal accessory retailing fell 9.4 per cent. Cafes, restaurants and takeaway food services were the only industry to rise in December, up 3.2 per cent. Online retail sales accounted for 9.1 per cent of total retail sales in December, compared to 6.6 per cent the previous year.