Report notes cut in spending

THE novelty of fast-fashion brands such as H&M, Zara and Uniqlo will begin to wane among Australian shoppers, a new report predicts.

But rivals shouldn’t pop the champagne corks just yet – the same report says fashion retailers in general will find it harder to get consumers to part with their dollars in the year ahead as tepid wage growth and falling house prices sideline shopping.

The findings are part of a retail industry snapshot to be released today by economic forecaster Deloitte Access Economics.

“The introduction of fastfashion, overseas fashion houses and online stores has transformed the industry over the past few years,” the report says. “Looking forward, it is unlikely that the growth of recent years will be repeated without another large industry transformation.”

Retail sales grew by a healthy 2.6 per cent for the year to June, the report says.

The growth – up on the 1.9 per cent gain posted in the 2017 financial year – was delivered by households dipping into savings amid low wage growth and strong price rises for nondiscretionary items such as electricity.

“Many households turned to their savings to support spending,” Deloitte partner David Rumbens said.

“This is not sustainable support and savings-driven sales growth can’t last forever,” Mr Rumbens said.