Desperate retail business owners are urging the Reserve Bank to release the handbrake on the economy, after November retail figures showed the Melbourne Cup Day rate rise halted spending. .
Figures released today by the Australian Bureau of Statistics (ABS) revealed that spending in November, which has traditionally been the strongest month for retail, grew just 2.2 per cent compared to last year.
National Retail Association director Rob Godwin said when inflation and population growth were taken into account, the figure represented a reduction in real terms.
"These are disappointing numbers given the growth in Black Friday and Cyber Monday sales in recent years," Godwin said.
“The Reserve Bank said it wanted to reduce spending. Well, spending has really been reduced.
“We predict that the first quarter of 2024 will be the most challenging quarter for businesses in many years.
"For the sake of business owners and their employees, we urge the Reserve Bank to start cutting interest rates again," he said.
Shoppers appear to have waited for the pre-Christmas sales event to catch up on shopping for household essentials, with home goods retail trading up a surprising 7.5 percent.
"Department store sales rose 4.2 percent, followed by retail sales of clothing, footwear and personal accessories, which rose just 2.7 percent," it said.
“CBD shopping centers were flooded with people taking advantage of the deep discounts offered in November, which slightly benefited cafes, restaurants and takeaway services, whose sales increased by 0.4 per cent.
"South Australia saw the largest increase in retail sales of 2.8 per cent, followed by Victoria which rose 2.4 per cent, while Queensland saw a sales increase of 2.2 per cent."
The National Retail Association represents more than 60,000 stores across Australia. It has been providing services to companies in the retail and fast food sectors for almost 100 years.
For more information, contact the National Retail Association media unit on 0467 792 013.
