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The lockdowns in major cities in Australia continued to bite customers as retail sales in the country fell 2.7% in the month of July 2021.
This is the largest monthly fall this year and follows a fall of 1.8% in June 2021, after a rise of 0.4% in May 2021, according to the Australian Bureau of Statistics.
“Lockdowns and stay-at-home orders in many parts of Australia continued to impact retail trade in July, with many non-essential retail businesses closing their physical stores,” Ben James, Director of Quarterly Economy Wide Surveys, said.
In particular, after the first full month of lockdown in New South Wales, following the Delta outbreak in June, retail turnover in the state witnessed a fall of 8.9% -- the largest drop witnessed by any state/territory since August 2020.
Other provinces that were under COVID-19 restrictions for at least part of the month saw varying trends in retail sales: South Australia (-3.3%) and Queensland (-0.9) experiencing falls, while Victorian retail sales surged 1.3% -- the strongest across the country.
The Victorian turnover rose as some restrictions from the prior month were eased further in early July, however, sales remained subdued due to a 12-day lockdown from mid to late July, the ABS said.
Industry-wise, cafes, restaurants and takeaway food services were worst hit – down 12.3%, followed by clothing, footwear and personal accessory retailing (down 15.4%), and department stores (down 11.4%), as they were hit by the closure of brick-and-mortar stores.
Food retailing, with a gain of 2.3%, saw the largest rise as COVID-19 restrictions kept people at home, limiting their movements.
This also happens to be the first release of the Retail Trade, Australia publication in line with the new release schedule following the discontinuation of Retail Trade, Australia Preliminary in June. This would be updated further on 3 September 2021 for impacts and changes.
