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Aussie retail spikes almost 3 per cent in June 2020 as online shopping booms

Published: (Updated: ) in Australian News by .

Much of the rise came from the hospitality industry as people returned to cafes and restaurants.

Australian retail turnover jumped almost 3 per cent in June, despite much of the country abiding by harsher coronavirus restrictions.

New data from the Australian Bureau of Statistics (ABS) showed total sales made by local retail shops rose 2.7 per cent in June 2020, marking a return to usual trade.

The spike comes after a 16.9 per cent rise in turnover during May.

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Coronavirus sign in sheet inset with a generic still of people at a cafe.

Director of Quarterly Economy Wide Surveys Ben James said much of the rise came from the hospitality industry – one of the hardest hit by COVID-19 rules.

"The June month saw the continued recovery of industries impacted by trading restrictions in April and early May," Mr James said.

"There were large month-on-month rises in cafes, restaurants and takeaway food services (27.9 per cent), and clothing, footwear and personal accessory retailing (20.5 per cent)."

Not all retail outlets experienced increased demand.

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Nerissa Jayasingha owner of cafe Lankan Tucker packing a take away order on July 09, 2020 in Melbourne, Australia.

In June department stores fells 12.1 per cent, as did household goods retailing – like appliances and furniture – which dropped 3.2 per cent.

Despite many retailers opening their doors to trade online shopping remains strong, comprising a whopping 9.7 per cent of all sales in June.

Strong months in May and June ultimately weren't enough to lift the quarter out of COVID-19 doom and gloom, as the ABS recorded a 3.4 per cent drop over the past three months.

Victims of Australia's retail crisis

"Despite monthly rises in May and June 2020, the June quarter saw the largest fall in seasonally adjusted retail volumes since the introduction of the GST in the September quarter 2000," Mr James said.

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"The quarterly fall was driven by falls in cafes, restaurants and takeaway food services (-29.1 per cent), and clothing, footwear and personal accessory retailing (-22.0 per cent), which both saw very large falls in April.

"There were also falls in food retailing (-1.6 per cent) following a March quarter rise, and Other retailing (-0.7 per cent)."

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Source: 9News

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