Retail sector a ray of sunshine amidst the gloom
The latest illion Business Expectations report has revealed the retail sector is more upbeat about trading conditions than any other sector. illion’s survey of more than 1,200 business owners and executives found retailers bucked wider negative trends across the overall business sector, with Australian retail businesses 120% more positive than this time last year, and almost 50% more positive than last quarter.
“In recent years, retailers have been hit hard by cautious consumers, weak wage growth, high debt and low savings. It looks like the sector is now bouncing back, driven by record interest rate cuts, a bottoming in the housing price market and a pick up in real wage growth.”
Simon Bligh, illion CEO
“The imposition of GST on online retailers overseas could have improved the outlook from local retailers, as consumers switch back to local suppliers. It is noteworthy too that online retail sales are continuing to grow, and in May 2019 made up 6.2 per cent of all transactions, up from 5.6 per cent a year earlier.”
Stephen Koukoulas, illion Economic Adviser