AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Retail sales grew 0.3% in March, below forecasted 0.4%
- Food retailing and other categories led the modest gains
- Queensland sees spending dip due to cyclone impact
Australian retail turnover edged up by 0.3% in March, a slight improvement from the 0.2% gain in February, as revealed by new data from the Australian Bureau of Statistics (ABS). However, the growth missed expectations, with economists predicting a 0.4% increase.
The lift in March’s retail performance was mainly driven by food retailing, which posted a 0.7% rise, supported by increased consumer spending in supermarkets and grocery stores. This trend was echoed in the 0.7% rise recorded in the 'other retailing' category. Clothing, footwear, and personal accessory retailing also saw a smaller but positive growth of 0.3%. However, household goods retailing remained unchanged during the month.
Not all categories fared equally. Spending in cafes, restaurants, and takeaway food services, as well as department stores, dipped by 0.5%, showing a reluctance among consumers to spend on discretionary services in the current economic climate.
Retail turnover increased across most Australian states and territories, with the exception of Queensland, which experienced a 0.4% fall. The decline in the Sunshine State was attributed to Ex-Tropical Cyclone Alfred, which disrupted local spending activity and dampened consumer confidence in the region.
According to Robert Ewing, ABS head of business statistics, March’s growth was largely fuelled by supermarket and grocery store sales. This aligns with broader consumer behavior, where spending has remained steady but cautious, especially in the face of economic uncertainty and ongoing cost-of-living pressures.
Despite the overall soft reading, the steady nature of retail growth suggests a resilient domestic economy. For investors focused on ASX dividend stocks, retail-focused companies that continue to show stable performance may remain in the spotlight. Companies such as Wesfarmers (ASX:WES), which owns Coles supermarkets, and Woolworths Group (ASX:WOW), a major grocery retailer, are closely watched in this space.
This update also adds context to the broader ASX200 performance, which includes key retail players and reflects market sentiment in sectors tied to consumer demand. Other retail stocks such as JB Hi-Fi (ASX:JBH) and Harvey Norman (ASX:HVN), both with exposure to discretionary and household goods spending, may also come under investor focus given the mixed category performance in March.
As inflation and interest rates remain critical factors in consumer behavior, upcoming retail data will be key in shaping expectations for the second quarter.
