The AFGC CHEP Retail Index has predicted a slight improvement in year-on-year retail sales growth in coming months.
CHEP's Asia Pacific president Phillip Austin said the index was 4.2 per cent higher in June 2015 compared with June 2014.
“Looking ahead to August 2015, there’s a continuation of the recent trend of improving retail sales growth, with year-on-year growth reaching 4.7 per cent,” he said.
“On a quarterly basis, the index was 4.3 per cent higher in the June quarter 2015 compared with the June quarter 2014, and growth is expected to lift to 4.6 per cent year-on-year by the September quarter this year.”
Latest Australian Bureau of Statistics trend data shows household goods retailing continues to be the strongest performing retail sector, most likely on the back of low interest rates and a strong lift in new home building. The low interest rates also appear to be supporting some discretionary categories such as clothing sales, which have strengthened since March 2015. However, food retailers have experienced a lower growth rate of around four per cent since late 2014.
Australian Food and Grocery Council (AFGC) CEO Gary Dawson said it was encouraging to see low interest rates and a pick-up in jobs growth rate flowing through to stronger retail sales.
“In food retailing, growth is lower than other retail sectors, but at four per cent or better, remains strong despite softening population growth, and is likely to continue to benefit from improved confidence and ongoing low interest rates,” he said.
The Retail Index is a collaborative project between the AFGC and CHEP Australia, powered by Deloitte. It uses CHEP transactional data based on pallet movements and is a lead indicator of Australian Bureau of Statistics Retail Trade Data.
Food retailing remains strong despite softening population growth, and will benefit from improved confidence and ongoing low interest rates.
