Australian retail sector on top of pandemic
Bright entry into 2021, but challenges remain.
Despite the deep recession brought on by COVID-19 restrictions, retail spending has been one of the bright spots in an otherwise difficult year for the Australian economy.
Australian consumer spending on retail actually grew over calendar year 2020.
And while 2021 is shaping up as an economic recovery year, for those retailers that were ahead of the pack, a transition back to more normal spending behaviour could mean that 2020’s windfalls are temporary.
According to Deloitte Access Economics’ latest quarterly retail forecasts report:
- Retail spending ended 2020 on a strong note, with volumes surging 6.4 per cent over the year to December quarter
- Retailers are likely to face challenges ahead, with spending slowing in the second half of calendar year 2021, to end 0.4 per cent lower in the year to December quarter 2021
- Those sectors that have benefited the most through COVID-19 lockdown, such as household goods retailing and supermarket spending, are likely to face larger headwinds in 2021 as restrictions ease and borders open.
David Rumbens, Deloitte Access Economics partner, said: “The retail sector tackled the COVID-19 crisis, and come out on top.”
Date Published:
16 March 2021