New Australian Bureau of Statistics (ABS) data has revealed retail spending for 2024 has declined significantly.
The data, released on 28 May, showed retail sales in April of this year only increased by 0.1% compared to April of last year (2023).
Comparatively, retail sales in May of 2022 increased by 10.4% from May of 2021. In the following year, May of 2023, retail sales only increased by 4.2%. This indicates while there has been an increase in sales, it is not as significant as in previous years and has steadily declined.
The data (see graphs above) indicates a steady decline in turnover prices and a near-plateau in the data trend line.
Retail assistant Caitlin Mitchell said her experience working in retail over the past couple of months has changed greatly.
“There has been a huge decrease in customers,” she said. “It was especially obvious during the back-to-school period this year,” she said.
“Last year you could barely move in the store and this year you wouldn’t have even realised it was back to school.
“I think it’s because last year the government had issued the back-to-school vouchers though and the majority of people were using them.”
Athlete’s Foot retail assistant Renee Farrugia government assistance had played a part in last year’s retail figures.
“Last year, there was a government initiative for parents buying school supplies for their kids, so there were more people than the previous year,” she said.
“This year, that initiative wasn’t in place, so we didn’t see the same amount of activity compared to last year.”
Ms Farrugia said her store had felt the brunt of the decline, and said her work hours had been reduced and customer complaints had increased.
“Many days are simply worked by the managers together, without the rest of the staff,” she said, “… and the main objection we receive at work is the price of the products. I think the cost of living will continue to impact customer spending.”
As the cost-of-living increases across the country, it is becoming more difficult for consumers to spend money on non-essentials. Michelle Marquardt, ABS head of prices statistics, released a statement on the ABS website,
“Increases in living costs in the March 2024 quarter ranged from 0.7 per cent to 1.7 per cent, depending on the expenditure patterns of the different household types, compared to a rise of 1.0 per cent in the Consumer Price Index (CPI),” she said.
Therefore, Australians are unable to shop in retail as much as previous years.
To highlight this struggle, a media release by Monash University showcased various statistics from their Australian Consumer and Retail Studies (ACRS). The stats showed that around 57% of surveyed Australians felt like they were spending more on groceries and related products.
UOW student Carla Oluk told UOWTV that she is much more conscious about what she is spending her money on.
“My personal spending has decreased heaps over the past year,” she said. “This is as a consequence of everything being so much more expensive, and because my work has suffered losses and, consequently, hours of casual staff have been cut back.”
Miss Oluk told UOWTV that she is struggling to keep up with expenses, even though she primarily saves her money,
“I find myself actively trying to save more than I spend, however I find this difficult with things like travel (petrol) and food costs being so high,” she said.
Similarly, student Emma Pagotto said when she shops she tries to make it the most sustainable and cheap she can,
“I generally will only shop at op shops because of its sustainability,” she said.
“I also cannot afford to purchase clothes at most clothing stores because i do not have the money to splurge.”
Ms Pagotto stressed her concern about cost-of-living as her expenses have increased this year,
“My rent has just increased and I’m already worried about how it’s going to impact my spendings daily,” she said.
“Over the last year, I have had to be really conscious of how I spend my money”
The Australian Bureau of Statistics expected the rate of retail spending to continue to decline, with clothing, footwear, and personal expenses retail taking the biggest hit.
