AFGC CHEP RETAIL INDEX INDICATES POTENTIAL SLOWDOWN
Retail trade growth may slow in the lead up to Christmas, according to the AFGC CHEP Retail Index. Year-on-year retail trade growth is expected to soften to 3.6 per cent in the December quarter from 4.2 per cent in the September quarter.
On a monthly basis, the Index was 4.4 per cent higher in September 2015 compared with September 2014, with retail trade turnover of $24.5 billion. Growth is expected to slow to 3.6 per cent year-on-year in the month of November with turnover of $24.6 billion.
The Australian Bureau of Statistics trend data indicates that the consistently strong food sector saw year-on-year sales growth weakening to below 3 per cent in August.
Australian Food and Grocery Council CEO, Gary Dawson said, “We are currently seeing weaker food price inflation domestically because of a range of factors including below average income growth over the past three years and a slowing in population growth.
“However, at the same time, the lower Australian dollar has seen a 28 per cent surge in Australia’s food and beverage exports in 2014-15, as reported in our annual industry snapshot State of the Industry 2015, underpinning growth in the food and grocery sector despite challenging economic conditions.”
Phillip Austin said, “In these times of challenge for domestic retailers CHEP is committed to support the industry with standardised and unitised solutions that unlock untapped efficiencies in the supply chain.”
The AFGC CHEP Retail Index is a collaborative project between the Australian Food and Grocery Council and CHEP Australia, powered by Deloitte. The Index uses CHEP transactional data based on pallet movements and is a lead indicator of Australian Bureau of Statistics Retail Trade Data.
The next AFGC CHEP Retail Index will be released in late January 2016.
AFGC Media Contact: James Mathews 0407 416 002
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 $118 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
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms. Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 5,000 people across the country. For more information, please visit our web site at www.deloitte.com.au
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.