New figures compiled by the Retail Traders' Association of Western Australia show shoppers across the state spent a record $2.75 billion last December.
New figures compiled by the Retail Traders' Association of Western Australia show shoppers across the state spent a record $2.75 billion last December.
This figure represents a $154 million increase, or 6.9 per cent jump, compared to the same period in 2006.
Whilst these figures are a good result and in line with RTA predictions for the period, the association said the retail sector was facing a number of significant challenges in 2008.
A series of interest rates rises, including today's one quarter of one per cent hike, has the potential to slow spending and lower consumer confidence.
The sectors to post gains in December 2007 compared to 2006 were; Food +$84 million, Dept Stores +$19 million, Clothing +$14 million, Household +$3 million, Other +$20 million and Hospitality +$26 million.
Recreational retailers chalked up a loss of $12 million.
Food and Hospitality sectors led the December figures and continue to perform strongly with growth for the year to date of 9 per cent and 8.4 per cent respectively.
Other sectors to also register strong growth include; Department Stores 6.6 per cent; Clothing & Soft Goods 8.0 per cent; and Other Retail 8.4 per cent.
However, retail sales in Western Australia for the year to date continue to lag behind the rest of the country. WA's sales have increased by 5.9 per cent compared with the national average of 7.6 per cent.
Seasonally adjusted the results are far worse - 6.9 per cent compared with the national result of 8.4 per cent.
RTA WA said that while tha data showed WA retail sales continued to grow, the rate of expansion was slowing, and the Indications for January 2008 were that the trend was set to continue.
Nationally, consumers spent more than $25 billion in a Christmas shopping spree in December according to the Australian Bureau of Statistics, turning a deaf ear to warnings of higher interest rates in 2008, new data shows.
Retail sales grew by a seasonally-adjusted 0.5 per cent in December, from November, according to the Australian Bureau of Statistics/
In original terms, consumers spent $25.633 billion on compared to $23.814 billion the previous year.
Economists had expected retail trade to rise by a seasonally-adjusted 0.6 per cent in December.
