Retail sales fall as 'for lease' signs become more common in Sydney, Melbourne

Retail sales fall as 'for lease' signs become more common in Sydney, Melbourne

Retail sales across the country dipped by 5.6 per cent in July month-on-month as lockdowns continued to impact the sector, according to new data released by MasterCard.

The MasterCard SpendingPulse report, which measures in-store and online sales across all forms of payment, also demonstrated retail sales were down 6.3 per cent in July compared to the same time last year.

However, when compared to July 2019, sales were actually up 6 per cent.

There were month-on-month falls in the retail categories of clothing (down 19.9 per cent), department stores (down 5.4 per cent) and food retailing (down 1.2 per cent). Household goods increased 0.8 per cent in July compared to the previous month (seasonally adjusted), however there were year-on-year falls across all retail categories.

Australian Retailers Association CEO Paul Zahra says lockdowns have a direct impact on retail sales and the pandemic pain will continue to be felt over the coming months.

“Delta is continuing to cause damage to businesses and livelihoods, in particular for our economic capital Sydney, where a nine-week lockdown is confirmed with no guarantee that restrictions will ease at the end of the month,” Zahra says.

“‘For lease’ signs are becoming a more common feature on CBD shop fronts in Sydney and Melbourne where the Delta devastation has been more severe and state and federal supports haven’t been enough to save businesses from closing their doors permanently.

“Lockdowns have a direct impact on retail sales as well as business and consumer confidence, and those impacts can be felt long after restrictions are eased, as it takes time for confidence and foot-traffic to build up again – it’s not an immediate snap back to the way things were.”

Updated at 12.25pm AEST on 23 August 2021.

Subscribe Now!
Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Accenture snares Sydney specialist resources and energy consultancy Partners in Performance

Accenture snares Sydney specialist resources and energy consultancy Partners in Performance

US-based professional services group Accenture has added Sydne...

Fundo Loans founder launches US spin-off Savvy with first credit line secured for gamified fintech

Fundo Loans founder launches US spin-off Savvy with first credit line secured for gamified fintech

The founder of Sydney-based fintech Fundo Loans, whose gamifie...

Webjet seeks to split business in two as annual profit heads for the sky

Webjet seeks to split business in two as annual profit heads for the sky

Online travel group Webjet (ASX: WEB) is looking to split its opera...

After several IPOs and acquisitions, Scaleup Mediafund is back in fresh $15m media-for-equity round

After several IPOs and acquisitions, Scaleup Mediafund is back in fresh $15m media-for-equity round

An Australian fund whose successful exit rate exceeds venture capit...