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Thursday, 7 September 2017

Stores the pity

Department stores struggling

Following a few strong months retail turnover was essentially flat in July at $26.1 billion.

The annual rate of growth therefore slowed a notch to +3.6 per cent.

Looking at the state level, Melbourne is evidently driving the retail economy forwards, while Queensland suffered a knockback over the past quarter due to a Cyclone and flooding. 

Western Australia was the best performer in the month of July in recording a +0.6 per cent gain in turnover, another sign that things are turning around for the better in the west. 

Finally, department stores continue to struggle, while household goods turnover was also negative in July. Furniture, housewares, and electrical goods are under pressure here. 

We can expect to see more of the same as apartment completions fall, while aggressive price discounting will also likely see soft consumer price inflation persist.