The power of the Black Friday and Cyber Monday sales on Christmas trade has been clearly demonstrated, after the Australian Bureau of Statistics released the retail figures for December.
After rising 38.2% ($847.9 million) in November, the clothing, footwear and personal accessories retail sector slipped 17.3% (-$531.2 million) in December.
The same can be said for department stores, which witnessed a 26% ($394.8 million) lift in November, but fell 21.3% (-$408.2 million) in December.
Overall, the ABS reports that retail trade fell 4.4% in December, after consecutive rises of 7.3% in November, 4.9% in October and 1.3% in September 2021.
ABS director of quarterly economy wide statistics Ben James said the 4.4% fall is the largest monthly fall since April 2020.
"Despite this month’s fall, retail turnover remains strong, up 4.8% on December 2020, with strong consumer spending continuing post the Delta Outbreak.
"Victoria recorded the largest fall of any state or territory, down 8.4%, however this only partly unwinds the state’s strong rise in November when it rose to a record level.
"Victorian turnover is now at the third highest level ever, 6.5% above December 2020," he said.
New South Wales had the second largest fall in December, down 4.2%, followed by Western Australia (3.5%), South Australia (4.1%), and Queensland (0.7%).
The Northern Territory was the only state or territory to rise in December, recording a 3.6% lift in the month.
In total, five of the six retail industries the ABS monitors fell in December, after experiencing rises in October and November.
However, despite the month-on-month falls, the ABS reports that retail spending remains elevated when compared to December 2020 – except for department stores, which is down 9%.
National Retail Association CEO Dominique Lamb said that the figures show retailers are still in need of government support.
"December is traditionally the busiest month of the year due to Christmas shopping.
"The drop in retail sales revealed today by the ABS confirms that the sector is facing a very challenging period.
"More Christmas shopping is taking place in November these days with events such as Black Friday, but the nosedive in monthly retail sales for December is the worst since April 2020.
"The Omicron surge has certainly cautioned people from heading out to the shops and many CBD workers continue to work from home.
"Lockdown restrictions may have been lifted in many parts of the country, but consumer confidence is very weak.
"The NRA is calling on state and federal governments to work together to provide support to smaller retailers who have suffered steep revenue drops during what is typically the busiest time of year.
"Australia had to gradually open up again, but we don’t want to come out of a health emergency only to be plunged in an economic crisis," she said.
