Growth strong but slowing
The 14th AFGC CHEP Retail Index released today shows year-on-year growth in retail sales remains strong despite easing moderately in the June quarter.
The Index shows year-on-year retail sales growth was 5.2 per cent in the June quarter down from 5.8 per cent in the March quarter, and year-on-year growth for the month of June was 4.9 per cent with a turnover of $23.11 billion, up from $23.01 billion in March.
Australian Food & Grocery Council CEO Gary Dawson said: “It’s pleasing to see growth is still quite strong at around 5 percent given that this period includes the impact on consumer sentiment of the May Federal Budget. Interest rates continue to remain low, and the labour market is picking up, so our expectation is 2014/15 will be a good year for retailers.”
Looking ahead nationally, growth in the Index is expected to remain at the current pace, with a rise of 5.1 per cent forecast for both the September quarter and month of August, with a turnover of $23.32 billion forecast in August.
However, retail performance across the states continues to be variable, with Western Australia seeing no retail sales growth over the past year while New South Wales enjoyed 8 per cent growth.
CHEP Australia & New Zealand President, Phillip Austin, said: “Although some states are doing it tougher than others, we’re delighted that CHEP’s data insights are showing retail sales growth will continue to be strong overall in the next quarter. We will continue to work with manufacturers and retailers across the country to find increased supply chain efficiencies to support growth in the food and grocery retail sector.”
The next AFGC CHEP Retail Index will be released in late October 2014. The AFGC CHEP Retail Index is available online at www.afgc.org.au or http://www.chep.com/blog/home/.
AFGC Media Contact James Mathews 0407 416 002 or Natalie Wimmer 0450 728 660
CHEP Australia Media Contact Dzintra Horder 0405 711 786
The Australian Food and Grocery Council (AFGC) is Australia’s peak national industry association, representing the $110 billion food, beverage and grocery manufacturing industry. As Australia’s largest manufacturing sector, the food and grocery manufacturing industry is a vital contributor to the wealth and health of our nation. The industry’s products are in more than 24 million meals, consumed by 22 million Australians every day, every week and every year. AFGC’s aim is for the Australian food, beverage and grocery manufacturing industry to be world-class, sustainable, socially-responsible and competing profitably domestically and overseas. AFGC represents one of the few manufacturing sectors that continues to grow and has significant potential for even further growth into the future. For more information, visit www.afgc.org.au
CHEP is a global leader in managed, returnable and reusable packaging solutions, serving many of the world’s largest companies in sectors such as consumer goods, fresh produce, beverage and automotive. CHEP’s service is environmentally sustainable and increases efficiency for customers while reducing operating risk and product damage. CHEP’s 7,500-plus employees and 300 million pallets and containers offer unparalleled coverage and exceptional value, supporting more than 500,000 customer touch-points more than 50 countries. Our customer portfolio includes global companies and brands such as Procter & Gamble, Sysco, Kellogg’s, Kraft, Nestlé, Ford and GM. CHEP is part of Brambles Limited. For more information, visit www.chep.com
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The information provided in the AFGC/CHEP Index (“the Index”) will be provided collaboratively by CHEP Australia ABN 11 117 266 323, Australian Food and Grocery Council ABN 23 068 732 883 and Deloitte Touche Tohmatsu ABN 74 490 121 060 (“the Producers”). The information provided in the Index will be current as at the stated release date and will be provided without taking account of any person’s personal objectives, financial situation or needs. Because of this readers should, before acting on any information, consider its appropriateness, having regard to their objectives, financial situation or needs. The information in any report may contain material provided directly or indirectly by third parties. The Producers accept no responsibility for the accuracy or completeness of any such material. Except where contrary to law, the Producers exclude all liability in negligence or otherwise for the information contained with any report. The information in each report will be subject to change without notice and the Producers will be under no obligation to update the information or correct any inaccuracy which may become apparent at a later date or to produce future releases of any report. The forecasts given in reports will be predictive in character and therefore inherently uncertain. Whilst reasonable efforts will be made to ensure that the assumptions and facts on which the forecasts are based are reasonable and correct, the forecasts may be affected by incorrect assumptions, incorrect facts or by known or unknown risks and uncertainties. The ultimate outcomes may differ from these forecasts.