Australian retail sales continued to advance in February after a resilient showing during the Omicron wave in January. Discretionary sales lifted strongly to drive a 1.8% increase in headline sales in February.
Retail Sales — February | By the numbers
- National nominal retail sales advanced by 1.8%m/m in February to $33.1bn, in line with the preliminary estimate and up from January's 1.6% rise (revised from 1.8%).
- 12-month retail sales lifted from 6.3% to 9.1%.
Retail Sales — February | The details
Australian retail sales posted another solid rise to be up 1.8% in February after a resilient 1.6% lift through the surge of Omicron in January. This took the gain in retail sales to 3.5% over the opening two months of 2022, a significantly stronger start to the year than in the comparable period in 2021 (0%). Overall, retail sales in February were 9.1% higher over the year and were 19% above their pre-pandemic level.
Non-food or discretionary sales elevated from January's 1.3% rise to post a strong 4.8% gain in February. The standout categories were clothing and footwear (11.2%) and department stores (11.1%), with both rebounding after pulling back from November's record highs. Turnover at cafes and restaurants accelerated (9.7%) as Omicron concerns subsided. This also weighed on online sales (-3.8%) that had surged in January (6.7%) when rising caseloads saw many Australians either in isolation or staying away from the shops. February's decline in food sales (-2.6%) was driven by a fall in supermarkets (-2.6%).
Retail sales growth picked up pace from the month prior in most states, consistent with an easing in Omicron. The strongest outcomes were seen in New South Wales (from 1.1%m/m to 3.9%m/m), ACT (0.5%m/m to 2.2%m/m) and Queensland (0.4% to 1.5%m/m). However, sales deteriorated in both Western Australia (4.4% to -2.9%) and Northern Territory (1% to -3.8%) as Covid started to spread more widely than it had throughout the pandemic.
Retail Sales — February | Insights
Australian retail sales have made a strong start to 2022 despite the presence of Omicron. This has also come alongside a weakening in measures of consumer sentiment. Some of this strength in retail sales is likely to be attributable to higher inflation, though factors such as a tight labour market and high accumulated savings would also be helping to drive robust consumer demand.
