- Lockdown recoveries over the December quarter of 2021 saw Australian retail sales volumes post their strongest quarterly rise on record, according to new data from the ABS
- Retail sales volumes grew by 8.2 per cent over the three months to December, surpassing the previous record set during the September quarter of 2020
- A rebound from Delta-induced lockdown lulls over the September quarter spurred the rise in retail sales volumes, as well as consumers getting on top of holiday shopping early
- Clothing, footwear and personal accessory retailing saw the largest rise over the December quarter, growing a whopping 43.1 per cent
- New South Wales and Victoria understandably recorded two of the largest volume rises in retail spending of all states and territories, up 15.3 per cent and 10.2 per cent, respectively
Lockdown recoveries over the December quarter of 2021 saw Australian retail sales volumes post their strongest quarterly rise on record, according to new data from the Australia Bureau of Statistics (ABS).
Retail sales volumes grew by 8.2 per cent over the three months to December, surpassing the previous record set during the September quarter of 2020. The December 2021 quarter rise followed a 4.4 per cent fall during the September 2021 quarter as much of the country spent weeks in lockdown amid the Delta COVID-19 surge.
It was a rebound from the lockdown lull, ABS Director of Quarterly Economy Wide Statistics Ben James said, that spurred the flurry of December activity.
“Consumers enthusiastically returned to discretionary spending following the end of Delta related lockdowns in October, and the continued easing of restrictions over the quarter,” Mr James said.
“Well-publicised concerns over product availability and delivery timeliness led to consumers bringing forward their end of year shopping, in conjunction with a re-opening spending splurge due to pent up consumer demand.”
At an industry level, clothing, footwear and personal accessory retailing saw the largest rise over the December quarter, growing a whopping 43.1 per cent. Retail spending on cafes, restaurants and takeaway food services grew by 18.8 per cent, household goods by 9 per cent, and department stores by 25 per cent.
At a state-by-state level, New South Wales and Victoria understandably recorded two of the largest volume rises in retail spending of all states and territories, up 15.3 per cent and 10.2 per cent, respectively. In the Australian Capital Territory, which was also majorly impacted by Delta lockdowns, retail sales volumes grew 12.4 per cent.
Even states that largely avoided extended lockdowns still increased in retail sales volumes, with only Tasmania shrinking by 1.2 per cent.
Cash still on the outs
Released in tandem with the ABS stats is a breakdown in retail payments for the month of December from the Reserve Bank of Australia.
The breakdown shows ATM withdrawals accounted for $8.4 billion in retail transactions over December: a far cry below the $65.8 billion worth of card purchases on Australian-issued cards.
Debit cards are also outpacing credit cards, with debit card transactions amounting to $38.2 billion and credit card transactions to $27.6 billion.
Even cheque payments were substantially higher than ATM withdrawals at $28.4 million.
The largest form of retail payment by value, however, was still the New Payments Platform, which was officially launched by the RBA in February 2018. NPP transactions accounted for $98.4 billion in retail payments in December.