Australian Retail Sales: May 2022 - Vertigo
About the author:
- Author name:
- By Alexander Mees
- Job title:
- Co-Head of Research and Senior Analyst
- Date posted:
- 30 June 2022, 8:00 AM
- Sectors Covered:
- Gaming and Retail
- Australian retail sales rose to new heights in May 2022. According to preliminary data from the ABS, retail sales last month were $34.2bn, up +10.4% year-on-year (y/y) and up +0.9% month-on-month (m/m). This was a new all-time record. On a two-year basis, retail sales in May 2022 were +18.7% higher than in May 2020. This was the fifth month in a row of positive m/m sales growth, while the y/y rate of growth was the fastest in more than a year.
- All retail categories except Clothing and Footwear grew positively on a m/m basis, while all retail categories without exception grew positively on a y/y basis. The best growth on a m/m basis was in Department Stores (+5.1%) and on a y/y basis was in Eating Out (+16.2%). Every state and territory except the ACT and Queensland saw positive m/m retail sales growth. The best m/m growth was in South Australia (+1.9%).
- There is no doubt that higher prices played an important part in the strong growth in retail sales last month. Consumers are not necessarily buying that much more, but they are certainly spending a lot more. That said, the pace of retail sales growth appears to be outstripping the rate of inflation, implying the consumers is yet to pull back. Nonetheless it seems inevitable that inflationary pressures on household budgets will see a reaction in due course.
Eating Out continues to grow the fastest
All major retail sales categories were in growth in May 2022 compared to May 2021. The strongest y/y growth, however, was in Eating Out (+16.2%) and Clothing and Footwear (+14.6%).
On a m/m basis, Department Stores and Eating Out were the best performers (+5.1% and 1.8% respectively).
Apparel in negative territory against tough comps
Clothing and Footwear was the only category in negative territory on a m/m basis in May 2022 (down -1.4%), after having been the best performer in April.
Household Goods underperformed in April (down -2.7%) but was positive in May (up +0.4%). On a y/y basis, the slowest growth was in Food and Drink (+6.2%).
Australia outperforming the US and the UK
Accelerating retail sales in Australia in May contrasts with a solidly negative performance in the UK last month. Retail sales there fell -5.7% y/y in May.
Retail sales are much more positive in the US, where sales growth accelerated slightly to +8.1% y/y, but this is still below the rate of growth in Australia.
Figure 1: Retail sales in the UK, the US and Australia
Source: ONS, US Census Bureau, ABS
Find out more
Download full research note
If you would like more information, please contact your adviser or nearest Morgans office.
Request a call
Find local branch
Need access to our research?
You are also welcome to start a two-week trial of our online platform, which provides access to detailed market analysis and insights, provided by our award-winning research team.
Create trial account
Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.