Australian Retail Sales: June 2022 - Another record high
About the author:
- Author name:
- By Alexander Mees
- Job title:
- Co-Head of Research and Senior Analyst
- Date posted:
- 29 July 2022, 10:30 AM
- Sectors Covered:
- Gaming and Retail
- According to preliminary data from the ABS, retail sales last month were $34.2bn, up +12.0% year-on-year (y/y) and up +0.2% month-on-month (m/m) to another record high. On a two-year basis, retail sales in June 2022 were +15.4% higher than in June 2020. This was the sixth month in a row of positive m/m sales growth, while the y/y rate of growth was the fastest in more than a year. The m/m growth was the smallest this year, however, suggesting that the rising cost of food and fuel as well as higher borrowing costs may be starting to have an effect on consumer spending.
- Eating Out, Clothing and Footwear, and Other Retailing all grew positively on a m/m basis, while Food and Drink, Household Goods and Department Stores all finished in negative territory. All retail categories without exception grew positively on a y/y basis. The best growth on a m/m basis was in Eating Out (+2.7%) and on a y/y basis was in Clothing and Footwear (+26.5%). NSW was the only state with negative m/m retail sales growth. The best m/m growth was in the Northern Territory (+1.8%).
Clothing and Footwear the outperformer
All major retail sales categories were in growth in June 2022 compared to June 2021. The strongest y/y growth, however, was in Clothing and Footwear (+26.5%) and Eating Out (+26.3%).
On a m/m basis, Eating Out and Clothing and Footwear were also the best performers (+2.7% and 1.3% respectively).
Department Stores declined m/m
The Department Stores category was in negative territory on a m/m basis in June 2022 (down -3.7%), after having been the best performer in May, but was still up 15.4% y/y.
Household Goods underperformed for the second consecutive month (down -0.3%). On a y/y basis, the slowest growth was in Food and Drink (+4.0%).
Australia continues to outperform the US and the UK
Accelerating retail sales growth of +12.0% y/y in Australia in June contrasts with a solidly negative performance in the UK. Retail sales there fell -5.9% y/y in June.
Retail sales are more positive in the US, where sales growth accelerated slightly to +8.4% y/y, but this is still below the rate of growth in Australia.
Eating Out continues to see good growth
All major retail sales categories were in growth in June 2022 compared to May 2021. The strongest y/y growth, however, was in Clothing and Footwear (+26.5%) and Eating Out (+26.3%).
On a m/m basis, Eating Out and Clothing and Footwear were the best performers (+2.7% and 1.3% respectively).
Figure 1: : Retail sales in the UK, the US and Australia
Source: Morgans Financial, Company
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