Retailers have urged the Reserve Bank of Australia to cut interest rates at its November meeting following sluggish retail sales for the month of September.
According to the Australian Bureau of Statistics (ABS) retail turnover rose by a paltry 0.1 per cent for the first month of Spring.
³Ô¹ÏÍøÕ¾ Retail Association (NRA) Interim CEO Lindsay Carroll said that a rate cut would provide a giant boost to consumer spending and thereby greatly help retailers as they enter the all-important Christmas trade period.
“The Christmas trade period is crucial every year to retail, but with the current cost-of-living crisis it will take on greater importance for the sector this year,” Ms Carroll said.
“The ABS figures reveal that spending in September was not disastrous, but it was well below the August turnover. Households are clearly still being extremely careful with how they spend money during the current economic environment.
“Just yesterday the ABS revealed that inflation had at long last dropped to within the prescribed range of the RBA. We think it therefore entirely justifiable that the RBA takes a serious look at a long-awaited cut to the official interest rate.”
The ABS report revealed mixed results across both the separate retail industries and each Australian state and territory.
“Household goods did represent a silver lining, gaining 0.5 per cent after negative growth the previous month. Cafes, restaurants and takeaway also recorded a growth in sales last month, but it was at a lower rate compared to August,” Ms Caroll said.
“Unfortunately, all other sectors of the industry went backwards in September and that’s why we believe a rate cut is needed to restore consumer confidence ahead of Christmas.”
“We acknowledge that September isn’t traditionally a busy month for retail as shoppers are mindful that the festive season is just around the corner. But many NRA members will be hoping for a stronger than usual festive period to help withstand the current challenging economic conditions.”
The ³Ô¹ÏÍøÕ¾ Retail Association represents more than 60,000 stores across Australia. It has been serving businesses in the retail and fast-food sectors for close to 100 years.
