14/06/2021 - 22:30

Retail to slow, but restaurants to win big

14/06/2021 - 22:30

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Retail spending will drop 1.4 per cent in WA in the financial year ahead, Deloitte expects.

Retail to slow, but restaurants to win big
Shops in Perth CBD. Photo: David Henry

Retail spending will drop 1.4 per cent in Western Australia in the financial year ahead, Deloitte expects.

That will follow a rapid rise in the year to June 2021, with Deloitte estimating growth of 9.7 per cent for this financial year.

Spending was significantly boosted in the early months of the financial year as households emerged from the first, long, lockdown.

Sales for WA were expected to increase only 0.2 per cent in the 2023 financial year.

Nationally, retail sales were forecast to rise 0.9 per cent in the year to June 2022, and 1 per cent in the 12 months to June 2023.

The biggest growth was expected to be for restaurants, cafes and takeaway, about 11.7 per cent nationally for the 2022 financial year.

Deloitte Access Economics partner David Rumbens said spending options had been limited in 2021, and households had flocked to retail.

“This has supported what is likely to be the strongest gain in retail spending in a decade,” Mr Rumbens said.

“But the next shift in consumer spending is also underway.

“Australian consumers have more options for spending with the easing of restrictions and a need for social contact is supporting eating out and other activities at the expense of other retail spending.

“March quarter data shows that that shift is already underway, with retail spending growth slowing from the heady days of late 2020.

“On the other hand, and with Victoria’s recent lockdown the most recent case in point, we are not necessarily snapping back to an open society.

“With international borders still closed for another year, and city-wide lockdowns still happening, overall, retailers can expect sales to remain well above pre-COVID levels, despite a slowdown in spending growth over 2021-22.”

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