AFGC CHEP Retail Index predicts modest retail growth
The latest Australian Food and Grocery Council CHEP Retail Index is reporting signs of a modest recovery in retail turnover growth in Australia as 2017 progresses.
This follows a sustained period of softening growth over 18-months, reflecting uncertainty in Australian and global economies.
The Index predicts year-on-year growth in Australian retail turnover of 4.6 per cent for the month of June 2017, 3.6 per cent year-on-year for the June quarter. This is an increase from a year-on-year rise of 2.6 per cent to March 2017.
Despite a persistent degree of consumer caution and a competitive retail environment, Australia’s economic outlook over the coming 12 months will experience modest improvements due to lift in global trade, China’s demand for commodities, tourism and growth in Australian household wealth.
Australian Food and Grocery Council Chief Executive Officer, Tanya Barden, said after a period of relatively subdued retail trade, it is encouraging to see signs of some positive momentum.
“We have seen food retail spending, in particular, pick up and fill some gaps from weaker non-food retailing, with catered food driving most recent improvements,” Barden said.
“Household goods have been the best performer for non-food retailing.”
President of CHEP Asia Pacific, Phillip Austin, said the reliability and efficiency of the supply chain continues to be a major factor in the success of Australia’s retail sector.
“Retail supply chains are already evolving to be more effective and sustainable in the face of increasing competition, emerging technologies and ever changing consumer needs,” Austin said.
“This may accelerate as firms look to capitalise on the stronger momentum forecast by the Index.”