The latest Australian Bureau of Statistics (ABS) Retail Trade figures reveal retail turnover fell 17.7% in April 2020, seasonally adjusted.
This is a slightly revised figure from the 17.9% recorded in the preliminary April report. The fall follows a rise of 8.5% in March 2020.
“COVID-19 continued to affect retail trade in April with many retail businesses closing their physical stores during April due to restrictions relating to social distancing” said Ben James, Director of Quarterly Economy Wide Surveys. “There were record falls in cafes, restaurants and takeaway food services (-35.4%), and clothing, footwear and personal accessory retailing (-53.6%), as well as a large fall in department stores (-14.9%).”
Food retailing (-17.4%) led the decline in value this month following unprecedented demand in March. Spending in food retailing remains 5.1% above the level of April 2019, reflecting additional meals being consumed at home during April 2020. Other retailing (-14.4%) declined after a large increase in March, while household goods retailing (-0.1%) saw a minor decline in sales as falls from closures of some physical stores were off-set by a rise in hardware, building and garden supply retailing.
The closure of physical stores in some industries led to an increase in online retail turnover, which contributed 11.1% to total retail turnover in original terms in April 2020, up from 7.1% in March 2020. In April 2019, online retail turnover contributed 5.7% to total retail. Additional analysis revealed that online sales made up over 20.5% of sales across household goods retailing, clothing, footwear and personal accessory retailing, department stores, and other retailing.
National Retail Association CEO Dominique Lamb said the ABS April report reveals the torrid time being experienced by the nation’s retailers.
“April was the first month to encompass the full suite of lockdown restrictions, so the sector was bracing itself for a giant drop in retail turnover,” Ms Lamb said.
“The March figures were propped up almost entirely by the large-scale panic buying taking place in supermarkets. It was feared that April would see the retail rollercoaster make a downward spiral and that is exactly what has happened.
“Across retail categories there were big drops in sales for April and each state and territory went backwards on monthly turnover. There was a rise in online spending due to a natural increased demand for digital purchases, but it was a drop in the ocean compared to the nosedive taken overall.”
The ABS April retail report comes just one day after Federal Treasurer Josh Frydenberg announced that Australian is now in its first recession since 1991.
“These figures emphasise the Treasurer’s announcement that we are in our first recession in 30 years. They also reiterate the need for retailers to continue to receive support from all governments to minimise the impact and save jobs,” Ms Lamb said.
“If there is one silver lining, we anticipate that given the economy is gradually reopening that April will be the worst month for retail. There is still a long way to go though and we urge Australians to support their local retailers wherever they can.”
