Tuesday 16 November 2021
Retail sales bounced back in October, led by increased spending in the states that have been spared the pain of prolonged lockdowns, according to Mastercard SpendingPulse™, which measures in-store and online retail sales across all forms of payment.
Retail sales across the country increased 4.2% in October compared to the same time last year and are up 10.1% on pre-pandemic levels in October 2019.
The states that have been living free of severe restrictions continue to record positive sales growth with Queensland (up 5.3%), Western Australia (up 5.2%), South Australia (up 3.5%) and Tasmania (up 4.7%) when compared to October 2020.
Despite the October reopening of retail stores in NSW and the ACT after prolonged lockdowns, retail sales remained subdued, down 1.1% in NSW compared to the same time last year and down 12.2% in the ACT. Victoria, where retailers reopened at the end of October, saw an increase in sales of 12.4% compared to October 2020, however that’s compared to their 100+ day second wave lockdown last year.
Department stores recorded another sharp downturn in year-on-year sales (down 12.3%) in October. However, there were marginal increases in sales of clothing (up 0.8%) and food (up 1.7%), while household goods experienced 14.2% growth in sales compared to October last year.
Australian Retailers Association CEO Paul Zahra said with 39 days to go to Christmas, and the worst of Covid now behind us, retailers are ramping up their operations and are looking forward to a positive festive trading period.
“Whilst it’s encouraging to see retail sales overall on the rebound in October, the results are mixed across the different categories and the states and territories,” Mr Zahra said.
“Department stores have recorded five consecutive months of negative sales growth, driven by the lockdown of the Australia’s two largest cities, however we are hopeful of a strong finish to the year. Christmas is a time when department stores shine with customers set to return in greater numbers to physical stores.
“Retailers in Sydney reopened on October 11, on October 22 in Canberra and on October 29 in Melbourne – so we are yet to see a full month’s worth of insights where lockdowns haven’t been a feature.
“There’s a lot of pent-up demand in those locations with consumers back out in droves, shopping and supporting their local businesses. Businesses will also have strong momentum behind them in the coming weeks leading up to Christmas, with consumers forecast to spend a record $5.4 billion in the Black Friday/Cyber Monday sales according to our research with Roy Morgan – so there’s a lot to look forward to. Consumer sentiment is upbeat and we’re set for a positive Christmas, despite the numerous Covid setbacks in 2021,” Mr Zahra said.
Mastercard SpendingPulse™ reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check.
Mastercard SpendingPulse October 2021
Mastercard SpendingPulse™ reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check. As such, SpendingPulse™ insights do not in any way contain, reflect or relate to actual Mastercard operational or financial performance, or specific payment-card-issuer data.
