Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 11 January 2017

Retail trade consolidates

Retail miss

Retail trade turnover missed expectations in rising by a seasonally adjusted 0.2 per cent to $25.66 billion, although this was the first miss in four months and came off the back of a 0.5 per cent gain in October. 

The annual rate of turnover growth has eased back to 3.3 per cent, comfortably below the half decade average. 

Around the traps

There were decent gains in November in New South Wales and Victoria, but not much to write home about elsewhere. 

The Australian Capital Territory has long been the leader in annual retail turnover growth since the opening of the Canberra IKEA, with New South Wales slotting into second spot, but growth has stalled in Western Australia. 

Smashed avo rally over?

The best performing sector this month was 'threads 'n' treads' - clothing and footwear - and the worst, surprisingly enough, was eating out!

Still, I wouldn't read too much into one month of figures - the trend figures show a 14.21 per cent share of total retail accounted for by takeaway food and eating out. It's never been higher. 

The wrap

A somewhat underwhelming result for retail trade this month, though when spending on services are included Commsec estimated that spending was galloping along at its fastest level since the financial crisis.