Australian Retail Sales: July 2022 - Well dressed

About the author:

Author name:

By Alexander Mees

Job title:

Co-Head of Research and Senior Analyst

Date posted:

31 August 2022, 7:30 AM

Sectors Covered:

Gaming and Retail

• Preliminary data from the ABS indicates that retail sales in July 2022 were $34.7bn, up +16.5% year-on-year (y/y) and +1.3% month-on-month (m/m) to yet another record high. On a two-year basis, retail sales in July 2022 were +12.7% higher than in July 2020. This was the seventh consecutive period of positive seasonally adjusted monthly growth in retail sales whilst the rate of y/y growth was the best it’s been in over 15 months. The m/m growth of +1.3% is the largest experienced since March this year suggesting that Australian consumers continue to go out and spend.
• Department Stores, Clothing and Footwear (Apparel) and Eating Out were all the best performers, growing positively on a m/m basis, while only Household Goods finished in negative territory. All retail categories with exception grew positively on a y/y basis. The best growth on a m/m basis was in Department Stores (+3.8%) and on a y/y basis was Apparel (+52.6%). Tasmania was the only state with negative m/m sales growth (-0.3%). ACT and VIC both experienced the best m/m sales growth with (+1.8%).

Apparel continues its ascendancy

All major retail categories were in growth in July 2022 compared to July 2021.

Strongest growth y/y was in Apparel (+52.6%) and Eating Out (+45.9%).

Strongest growth m/m was in Department Stores (+3.8%) and Apparel (+3.3%).

Home alone. Household Goods, once again down m/m

All major retail categories expect for Household Goods were in growth in July 2022 compared to July 2021.

The lowest rate of growth y/y was in Food and Drink (+3.2%) followed by Household Goods (+10.5%).

Household Goods however, experienced its second consecutive m/m period of negative growth reporting (-1.1%) on June 2021.

Australia continues to experience continued consumer demand

Australia continues to outperform the US and the UK in Retail Sales.

In July 2022 Retail Sales in Australia were remarkably robust at (+16.5%) y/y.

During the same period the US reported Retail Sales growth of (+10.3%) y/y, the strongest level of growth since February 2022. 

The UK continues negative performance where Retail Sales fell (-3.0%) y/y.

Figure 1: : Retail sales in the UK, the US and Australia

Source: Morgans Financial, Company

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Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.