Black Fri­day boosts sales

The Weekend Post - - Business -

RE­TAIL spend­ing rose 0.4 per cent in Novem­ber, beat­ing mar­ket ex­pec­ta­tions, in a sign that Aus­tralians have well and truly em­braced the Black Fri­day and Cy­ber Mon­day dis­count sales.

Sea­son­ally ad­justed re­tail spend­ing was $27.12 bil­lion for the month, up from $26.99 bil­lion in Oc­to­ber, ac­cord­ing to Aus­tralian Bureau of Statis­tics data re­leased yes­ter­day.

Econ­o­mists had pre­dicted a turnover boost on the na­tion’s rel­a­tively re­cent em­brace of Black Fri­day and Cy­ber Mon­day sales seen in the US. “House­hold goods re­tail­ing (1.2 per cent) led the rise while there was also a no­table rise for cloth­ing, footwear and per­sonal ac­ces­sories re­tail­ing (1.5 per cent),” Ben Faulkner, act­ing di­rec­tor of Quar­terly Econ­omy Wide Sur­veys, said.

How­ever, some an­a­lysts say the dis­count frenzy could also see qui­eter De­cem­ber fig­ures.

“The rise of Black Fri­day, Cy­ber Mon­day and Click Frenzy sales have seen house­holds bring for­ward their Christ­mas shop­ping and Box­ing Day Sales shop­ping into Novem­ber,” NAB said in a note yes­ter­day morn­ing.

“Re­ports from re­tail­ers, e.g. Kathmandu’s re­cent profit warn­ing, sug­gest sales in De­cem­ber were weaker than in Novem­ber.”

A string of Aus­tralian re­tail­ers have closed in re­cent times, in­clud­ing Marcs, Pump­kin Patch, Payless Shoes and Roger David, while de­part­ment store Myer has strug­gled.

E-com­merce drove spend­ing in Novem­ber, with the ABS es­ti­mat­ing that 6.6 per cent of to­tal spend­ing was done on the web, up from 5.5 per cent of to­tal spend­ing in Novem­ber 2017.

BIS Ox­ford econ­o­mist Sarah Hunter said the data also con­firmed con­di­tions for house­holds re­mained some­what chal­leng­ing, which has kept a lid on growth in turnover.

“Although wage growth has picked up slightly it re­mains weak in ab­so­lute terms,” she said. “And with dwelling rents stag­nat­ing and in­ter­est rates on hold, in­creases in in­come from non-em­ploy­ment sources have also been lim­ited.”

She said this would likely see re­tail turnover growth re­main weak in 2019. The Novem­ber re­sult was bet­ter than the 0.3 per cent rise ex­pected by the mar­ket, with the Aus­tralian dol­lar spik­ing above 72 US cents on the re­lease.

There was a monthly rise in food re­tail­ing, up 0.2 per cent to $11 bil­lion, as well as a lift for de­part­ment stores, up 0.4 per cent to $1.57 bil­lion. Spend­ing at cafes, res­tau­rants and take­away ser­vices re­tail­ing fell 0.1 per cent to $3.81 bil­lion.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.