Index Predicts Modest But Positive Growth in Retail Sales
Retail sales growth will remain positive despite a modest slowdown heading into the September quarter according to the 22nd edition of the AFGC CHEP Retail Index released today.
Growth in Australian retail sales, in trend, nominal terms, has continued to slow marginally over the past two quarters to 3.5 per cent in the June quarter, the AFGC CHEP Retail Index shows. Looking ahead to the September quarter, the Index forecasts a further softening to 3.1 per cent year-on-year growth.
On a monthly basis, the Index was 3.6 per cent higher in the month of June 2016 compared with the month of June 2015 and year-on-year growth for the month of August 2016 is forecasts to be 3.1 per cent.
Australian Food and Grocery Council CEO, Gary Dawson, said: “Factors including food price deflation and a cooling housing cycle are having an effect on food retailers who have experienced relatively weak sales growth through 2016. However, overall, Australian retailers are continuing to see positive sales growth, albeit modest.”
President of CHEP Asia Pacific, Phillip Austin, said: “CHEP will continue to drive innovation through collaboration with our customers and industry partners to find new areas of growth for their businesses. At the end of the day, our customers’ challenges provide us with opportunities to support them. We are doing this by developing new solutions designed to solve merchandising, handling and replenishment inefficiencies, improve on shelf availability and ultimately increase dollars spent per square metre in store.”
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.
AFGC Media Contact: James Mathews 0407 416 002