The retail trade may be in for a challenging trading period this Christmas, though food retailers will fare the best according to the latest AFGC CHEP Retail Index.
The index indicates that year-on-year growth in retail sales is slowing and a turnaround is not expected in the remaining months of this year.
However, according to ABS data over the past year, with discretionary spending under pressure food retailers are performing the best.
Australian Food & Grocery Council (AFGC) CEO, Gary Dawson, said retail sales growth is underperforming against longer term trends, with the growth rate halving over the course of 2013.
“Food retailers are performing best with sales growth of around three per cent over the past year. Retailers will be hoping the recent improvement in consumer confidence will assist sales growth this Christmas,” he said.
On a quarterly basis, year-on-year, the Index was 1.8 per cent higher in the September quarter than in the same period last year and growth is expected to further ease to 1.5 per cent in the December quarter 2013, according to the Index.
For the month of September the Index indicates that the Australian Bureau of Statistics (ABS) is likely to report 1.9 per cent increase in year-on-year retail growth and turnover of $21.89 billion.
Looking ahead, the Index forecasts November year-on-year growth at 1.5 per cent, with turnover dropping to $21.85 billion.
CHEP Australia & New Zealand president, Phillip Austin, said: “The AFGC CHEP Retail Index forecasts highlight the criticality of effective and efficient supply chains in maximising on shelf availability and promotion in the peak Christmas period, and we will be focusing our efforts on helping retailers have product where they need it, when they need it over what is traditionally the busiest retail period of the year.”
