Grocery retail growth strong but slowing
The 14th AFGC CHEP Retail Index released today has shown year-on-year growth in retail sales has remained strong despite easing moderately in the June 2014 quarter.
The Index showed year-on-year retail sales growth was 5.2 per cent in the June 2014 quarter down from 5.8 per cent in the March 2014 quarter, and year-on-year growth for the month of June 2014 was 4.9 per cent with a turnover of $23.11 billion, up from $23.01 billion in March 2014.
“It’s pleasing to see growth is still quite strong at around 5 percent given that this period includes the impact on consumer sentiment of the May Federal Budget,” said Gary Dawson, Australian Food and Grocery Council (AFGC) CEO. “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,” he said.
Growth expected to remain steady
Looking ahead nationally, growth in the Index is expected to remain at the current pace, with a rise of 5.1 per cent forecast for both the September 2014 quarter and month of August, with a turnover of $23.32 billion forecast in August 2014.
States see different growth rates
However, the Index showed retail performance across the States continued to be variable, with Western Australia seeing no retail sales growth over the past year while New South Wales enjoyed 8 per cent growth.
“Although some states are doing it tougher than others, we’re delighted that CHEP’s data insights are showing retail sales growth will continue to be strong overall in the next quarter,” said Phillip Austin, CHEP Australia & New Zealand President. “We will continue to work with manufacturers and retailers across the country to find increased supply chain efficiencies to support growth in the food and grocery retail sector,” he said.
The next AFGC CHEP Retail Index will be released in late October 2014.