Retail sales growth strong: AFGC CHEP Retail Index

Despite easing in the June quarter, year-on-year growth in retail sales remains strong, according to the 14th AFGC CHEP Retail Index.

Year-on-year retail sales growth was 5.2% in the June quarter, down from 5.8% in the March quarter, the Index shows. Year-on-year growth for June was 4.9% with a turnover of $23.11 billion - an increase on the March turnover of $23.01 billion.

Retail trade turnover (in $millions). Source: CHEP/AFGC.

“It’s pleasing to see growth is still quite strong at around 5% given that this period includes the impact on consumer sentiment of the May federal Budget. Interest rates continue to remain low, and the labour market is picking up, so our expectation is 2014/15 will be a good year for retailers,” said Gary Dawson, Australian Food and Grocery Council (AFGC) CEO.

Growth in the Index is expected to remain consistent, with a 5.1% rise forecast for August and the September quarter. A turnover of $23.32 is forecast in August.

Year-on-year growth. Source: CHEP/AFGC.

Western Australia has seen no retail sales growth in the past 12 months. In contrast, New South Wales has experienced 8% growth.

To read the Index, visit www.chep.com/blog/home or www.afgc.org.au. The next AFGC CHEP Retail Index will be released in October.