ABS releases buoyant May retail turnover figures.
Yesterday’s positive Australian Bureau of Statistics retail figures for the month of May prompted www.connectedaustralia.com to canvass some major retail players to gauge their reaction to the unexpected surge in the retail sector.

The ABS data revealed a 1% increase in retail turnover for May; this follows increases of 0.3% in April 2009 and 2.2% in March 2009. 

Treasurer Wayne Swan has attributed the strong retail data to the government’s stimulus measures.

But the CEO of Radio Rentals John Hughes has compared the stimulus packages to a ‘couple of shots of methadone’ for Aussies who ‘haven’t yet come off that drug called debt’.

While surprised by the May increase, Hughes is ambivalent about how much the stimulus packages have affected the data. 

“Everything is tracking very nicely at the moment; because our business is anti-cyclical, i.e. we do well in good times, but we can do even better in tough times, given the buoyant conditions we’re experiencing, one would have expected the retail figures to be softer,” he added.

While not delving into specific sales figures, Harvey Norman executive director, David Ackery did tell www.connectedaustralia.com that May and June have been very strong for the furniture and electrical retailer, so the overall retail increase doesn’t surprise him.

ANRA says stimulus worked
The Australian National retailers Association believes the stimulus packages have been pivotal to retail performance.

“Modelling by Access Economics estimates the cash handouts contributed $758 million in retail sales in May, bringing the stimulus effect of the two cash handouts to $3.6 billion,” ANRA CEO
Margy Osmond said.

“Without the stimulus packages, the retail sector would be in a much poorer state.”

State economies grew
All the states experienced growth, except for Tasmania. Western Australia was the leader, growing 3.5 %, Victoria is up 0.7 %, Queensland up 1.5 %, South Australia gained 1.8 %. NSW and the NT are relatively unchanged.

Department stores grew 5.5 %, and clothing and soft good retailing was up 2.9 %. Continued lack lustre demand for household goods saw sales fall 2.0 %.