Australian retail sales registered a disappointing result in April, with total turnover contracting for the first time in 2012. The decline sent the dollar skidding at investors raised their bets of another interest rate cut.

 

Sales for the month fell 0.2 per cent, defying expectations by analysts of a gain by that margin, to total a seasonally adjusted $21.256 billion, according to the Australian Bureau of Statistics.   :-?

The drop was a sharp reverse from March's revised 1.1 per cent increase in retail turnover.
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More spending, more rewards? ... not likely, says the RBA.

Retailers continue to do it tough.    :(

Victoria led the decline, with sales dropping 1.6 per cent for the month, its steepest drop since June 2008. New South Wales, though, bucked the trend, rising 0.7 per cent in April.

"It was a fairly weak outcome," said National Australia Bank economist Ali Knight. "It follows surprising strength in March."

The drop in retail spending adds to evidence that the Reserve Bank was slow in cutting interest rates as it weighed up signs of patchy growth and the coming mining investment bulge. The central bank lopped 50 basis-point cut on May 1 and the market is pricing in as a certainty another reduction of at least another 25 basis points.

The dollar fell back below the 98 US-cent mark on the retail news, losing about 0.4 of a US cent to drop as low as 97.76 US cents.

'Struggling'

"The department stores are really struggling," NAB's Ms Knight said. 'It's possible that there is heavy discounting happening without an increase in demand."   :(

Department store sales fell 1 per cent in the month, seasonally adjusted, while food sales rose 0.1 per cent.

"Margins are being squeezed," Ms Knight said. "We're seeing it across the board."   

In a separate release by the ABS, construction work done rose in the March quarter by 5.5 per cent, following a revised 3.4 per cent drop in the final quarter of 2011, according to the ABS. Economists polled by Bloomberg tipped a 3 per cent rise in the first quarter.

State by state

Among other states, retail sales in Western Australia sank 0.2 per cent, while they inched up 0.1 per cent in Queensland, the ABS said.

In Tasmania retail sales fell 0.6 per cent, matching the Australian Capital Territory’s 0.6 per cent fall in the month.

Household goods retailing dropped 0.8 per cent in April, while clothing and footwear sales slipped 0.1 per cent.

Sales at restaurants, though, rose 0.4 per cent, while other retailing dropped 0.7 per cent in the month, the ABS said.

"Retail spending is struggling to eke out a sustained improvement," said Moody's Economy.com analyst Katrina Ell.   :(

"Despite rate cuts and the possibility of further easing, consumers remain stubbornly cautious amid the uncertain global environment and weaker conditions in the non-mining sectors."

"We are cautiously optimistic that as rate cuts filter through the economy sentiment will improve and this will flow through to retail trade," she said.

Rates caution

Not all economists, though, are pencilling in a June interest rate cut by the central bank.

"Some people will see the (retail) reading will add to the case for lower rates at the June meeting but I don't see it that way because there is so much cash coming in to households from the (federal) budget," said Saul Eslake, economist at Bank of America/Merrill Lynch.

"If anything, the RBA will cut after the Greek elections, not before," he said. "We think it will ease in August but we are more than willing to bring it forward to July if something blows up in Greece."

"The rise in construction work done will add to GDP but at this stage, there are so many more pieces to come including capex tomorrow, that I am not revising my forecast yet," he said.

With Reuters

Read more: http://www.theage.com.au/business/retail-sales-in-surprise-retreat-20120530-1zig4.html#ixzz1wLcxNkiJ

Retailers continue to do it tough.   Yes and I continue to tell them, cut your prices.   :(

wrote on May 30^th, 2012 at 8:40pm:

Retailers continue to do it tough.   Yes and I continue to tell them, cut your prices.   :(

Don't bother giving them advice. They are too scared to deal with the greedy fat landlord elephant in the room.

I just bought a whole heap of stuff off ebay in the last few weeks and I didn't even have to start the car ;)

Getting your stuff delivered through the post is just like having Santa Claus visit you. It's kind of exciting unwrapping the parcels especially when you have bought so much and you have forgotten what the item is :D LOL

Yes that is so Nail, and save a fortune in the price as well.   :)

Sir lastnail wrote on May 30^th, 2012 at 9:25pm:

wrote on May 30th, 2012 at 8:40pm: Retailers continue to do it tough.   Yes and I continue to tell them, cut your prices.   :( Don't bother giving them advice. They are too scared to deal with the greedy fat landlord elephant in the room. I just bought a whole heap of stuff off ebay in the last few weeks and I didn't even have to start the car ;) Getting your stuff delivered through the post is just like having Santa Claus visit you. It's kind of exciting unwrapping the parcels especially when you have bought so much and you have forgotten what the item is :D LOL

I've been doing a bit of ebay and online shopping in the last couple of weeks too. Just like you say, no wandering from store to store to check prices, no push and shoving for a parking spot within a km of where you need to be, no waiting at the understaffed checkouts.

Apart from Aldi, I haven't been to a bricks and mortar shop for yonks.

It is like Chrissy when the delivery van turns up with your goodies.

I highly recommend online shopping, it's peaceful.

Save money and lower your blood pressure.

www.groceryrun.com.au

Cheaper than Aldi.

Dont say I never give you anything Pansi.

I'd never say that verge. Thanks for that, I have seen the ad on tv after my computer is shut down, so never bothered to look.

They really are cheap. Aldi better stay focused or they'll be pipped at the post by groceryrun. Flat rate of $11 for delivery. I wonder how they do it, they'd be far behind if people ordered more than one box of goods.

Verge wrote on May 31^st, 2012 at 10:46am:

www.groceryrun.com.au Cheaper than Aldi. Dont say I never give you anything Pansi.

"We offer flat rate delivery for only $11 no matter where in Australia you live or how much you buy. Yes, it's awesome of us; we do it for the customers and we do it with love. Australia Post is our distribution partner and they're pretty excellent - typically, customers can expect their goods within 72 hours. We also have a new warehouse system in place so your order will be picked, packed and shipped almost immediately. Look, if the postman gets lost on the way to your house, that's out of our hands. We try to draw good maps for him, but none of us are trained cartographers. Don't hate!"

No thanks, I'll stick with Aldis !!

http://www.outware.com.au/shopethical/ShopEthical.html

Ex Dame Pansi wrote on May 31^st, 2012 at 12:29pm:

I'd never say that verge. Thanks for that, I have seen the ad on tv after my computer is shut down, so never bothered to look. They really are cheap. Aldi better stay focused or they'll be pipped at the post by groceryrun. Flat rate of $11 for delivery. I wonder how they do it, they'd be far behind if people ordered more than one box of goods.

I know a woman who bought 10 tins on baby formula there last week and saved $15 a tin on the cheapest place she could find any where online.

Its luck of the draw thing, but damn its cheap if they have what you are looking for.

Sir lastnail wrote on May 31^st, 2012 at 12:39pm:

Verge wrote on May 31st, 2012 at 10:46am: www.groceryrun.com.au Cheaper than Aldi. Dont say I never give you anything Pansi. "We offer flat rate delivery for only $11 no matter where in Australia you live or how much you buy. Yes, it's awesome of us; we do it for the customers and we do it with love. Australia Post is our distribution partner and they're pretty excellent - typically, customers can expect their goods within 72 hours. We also have a new warehouse system in place so your order will be picked, packed and shipped almost immediately. Look, if the postman gets lost on the way to your house, that's out of our hands. We try to draw good maps for him, but none of us are trained cartographers. Don't hate!" No thanks, I'll stick with Aldis !!

$11 for delivery, think of the money you can save and dont have to go to the store to do it.  Dont have to drive and its all name brand things as well.

Only you could be so stubborn.

Verge wrote on May 31^st, 2012 at 12:58pm:

Ex Dame Pansi wrote on May 31st, 2012 at 12:29pm: I'd never say that verge. Thanks for that, I have seen the ad on tv after my computer is shut down, so never bothered to look. They really are cheap. Aldi better stay focused or they'll be pipped at the post by groceryrun. Flat rate of $11 for delivery. I wonder how they do it, they'd be far behind if people ordered more than one box of goods. I know a woman who bought 10 tins on baby formula there last week and saved $15 a tin on the cheapest place she could find any where online. Its luck of the draw thing, but damn its cheap if they have what you are looking for.

I saw the Nan baby food for $4.95 a tin. You'd have to stock up at that price. It would be well worth it even if you bought a few items in bulk. Most things have a fair shelf life so you can buy enough for at least six months or even a year.

I say watch out Aldi, this type of business will only spread.

I'll be keeping an eye out and if they have what I'm looking for I'll be the winner. I love competition, there should be more of it across all domains.

Verge wrote on May 31^st, 2012 at 1:00pm:

Sir lastnail wrote on May 31st, 2012 at 12:39pm: Verge wrote on May 31st, 2012 at 10:46am: www.groceryrun.com.au Cheaper than Aldi. Dont say I never give you anything Pansi. "We offer flat rate delivery for only $11 no matter where in Australia you live or how much you buy. Yes, it's awesome of us; we do it for the customers and we do it with love. Australia Post is our distribution partner and they're pretty excellent - typically, customers can expect their goods within 72 hours. We also have a new warehouse system in place so your order will be picked, packed and shipped almost immediately. Look, if the postman gets lost on the way to your house, that's out of our hands. We try to draw good maps for him, but none of us are trained cartographers. Don't hate!" No thanks, I'll stick with Aldis !! $11 for delivery, think of the money you can save and dont have to go to the store to do it.  Dont have to drive and its all name brand things as well. Only you could be so stubborn.

but they don't have everything and their website is a mess. It looks more like a lucky dip than a grocery store and most of what they are flogging is chocolate and lolly crap.

for example

8 x Kellogg's All-Bran Original 50gm or 400 gm total they want 3.92 with the discount !!

Guess what, I pay $2.99 for 525 grams at Aldis !! I couldn't be bothered waiting for the things that I need. It may work with ipods and DVD's but that sort of marketing doesn't work for groceries especially with the $11 delivery fee :(

Ex Dame Pansi wrote on May 31^st, 2012 at 1:37pm:

Verge wrote on May 31st, 2012 at 12:58pm: Ex Dame Pansi wrote on May 31st, 2012 at 12:29pm: I'd never say that verge. Thanks for that, I have seen the ad on tv after my computer is shut down, so never bothered to look. They really are cheap. Aldi better stay focused or they'll be pipped at the post by groceryrun. Flat rate of $11 for delivery. I wonder how they do it, they'd be far behind if people ordered more than one box of goods. I know a woman who bought 10 tins on baby formula there last week and saved $15 a tin on the cheapest place she could find any where online. Its luck of the draw thing, but damn its cheap if they have what you are looking for. I saw the Nan baby food for $4.95 a tin. You'd have to stock up at that price. It would be well worth it even if you bought a few items in bulk. Most things have a fair shelf life so you can buy enough for at least six months or even a year. I say watch out Aldi, this type of business will only spread. I'll be keeping an eye out and if they have what I'm looking for I'll be the winner. I love competition, there should be more of it across all domains.

That's what Campbells do but now they are in a bit of a  mess and closing down warehouses. They have discount lines each month that are really good prices but unless you need that stuff at the time you are not going to buy it. It's good for small businesses such as milk bars or 7/11's but not much good for the consumer who wants a good price on everything.

I stopped buying from Campbells when Aldi's opened up ;)

I went into a local big-name 'chain' electronics store the other afternoon, to enquire
about a replacement for my recently-deceased Uniden 73XLT radio scanner.

Well, guess what?


'Oh, I don't think we've got one of them'.


Well, why the Hell not, it's not as if it's something esoteric with a limited target audience.

And they ARE an electronics store, after all.

They can't make money if they don't stock the product you want.

Kat wrote on May 31^st, 2012 at 2:15pm:

They can't make money if they don't stock the product you want.

Even worse in Perth   >:(

wrote on May 30^th, 2012 at 8:40pm:

Retailers continue to do it tough.   Yes and I continue to tell them, cut your prices.   :(

Let's not get confused, food was fine it was department stores and they best get used to it as the rivers of cheap credit have dried up and they won't flow again for a very long time.

always good to hear those traditionally stupid posters lamenting the retail sectors problems by discussing how to buy online and screw them a litle bit more.

The trouble is you are generally too stupid to recognise your own hypocrisy.

longweekend58 wrote on May 31^st, 2012 at 8:03pm:

always good to hear those traditionally stupid posters lamenting the retail sectors problems by discussing how to buy online and screw them a litle bit more. The trouble is you are generally too stupid to recognise your own hypocrisy.

Six other people saw it here that you can buy online and David Jones folded boo hoo

Message to retail stores:

The shopfront is on the computer screen.

Message to longweekend:

Move with the times or perish. Horse shoeing is no longer a viable industry.

longweekend58 wrote on May 31^st, 2012 at 8:03pm:

always good to hear those traditionally stupid posters lamenting the retail sectors problems by discussing how to buy online and screw them a litle bit more. The trouble is you are generally too stupid to recognise your own hypocrisy.

You are the typical dinosaur ain't you. Times have changed and you are dragging the chain. You pine for the good old days but you still don't understand that they were not good they were cheap credit and the ever present GFC as a result. Greed is the problem.

longweekend58 wrote on May 31^st, 2012 at 8:03pm:

always good to hear those traditionally stupid posters lamenting the retail sectors problems by discussing how to buy online and screw them a litle bit more. The trouble is you are generally too stupid to recognise your own hypocrisy.

but when it comes to screwing the worker "a little bit more" you libbos are all for it :(