ASX retail shares receive a boost leading up to Christmas, as ABS retail data suggest the Australian economy is heading ‘back to normal’.
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ASX retail shares have arguably been given a boost heading into Christmas. Retail sales data released today suggest the Australian economy might be heading ‘back to normal’ trading conditions.
In a media statement released today, the Australian Bureau of Statistics (ABS) reported that Australian retail turnover rose 7% in November, seasonally adjusted.
The latest data from Australia Post also suggested that the first week of December and the week of Black Friday recorded the biggest number of online purchases Australia has ever seen.
In today’s trading however, online retail shares have been hit hard amid a broader selloff on the ASX.
What did the stats say?
The ABS reported that the strong turnover in November also represents a 13.2% increase when compared to November 2019.
Victoria saw a large rise, up 21% compared to the previous month, as retail stores experienced a full month of trade following the easing of coronavirus restrictions in that state. Excluding Victoria, retail sales rose 2.7%.
By industry, household goods retailing led the gains, increasing by 13%, as Black Friday sales and major product releases in the electrical subgroup led to a spike in turnover across the country, the ABS said.
Online retail sales performed even stronger, with Australian households buying more items online in the first week of December than ever recorded before. This was reflected by a 42% increase in online purchases made compared to last year.
According to the latest report from Australia Post, Australians spent $3.2 billion online in October, a 70% increase on the $1.9 billion spent last October.
This report also suggested that the first week of December and the week of Black Friday recorded the biggest number of online purchases ever experienced in Australia.
An Australia Post spokesperson said the company has “consistently been delivering over 13 million parcels each week in December”.
South Australia, which saw a short lockdown within November, had a flat result. Most South Australian retail industries saw falls as a result of temporary store closures, although these falls were offset by a rise in supermarket sales.
The rises in Victoria, and Black Friday purchases, also led to large national monthly rises in clothing, footwear and personal accessories sectors as well as other retailing and department stores.
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Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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