Finally, food retail spending is increasing

The latest AFCG (Australian Food and Grocery Council) CHEP Retail Index points to modest recovery in retail turnover in Australia, led by the food, particularly catered food, sector.

The AFGC CHEP Retail Index is based on robust data that includes 10 million data points based on CHEP Australia pallet movements associated with 10,000 customer accounts, which is analysed by Deloitte Analytics. The quarterly index provides an accurate forward indicator of retail trade sales published ahead of official Australian Bureau of Statistics historical data and forecasts, with a high degree of accuracy for activity in the Australian retail sector

And … the 26th AFCG CHEP Retail Index is showing upward trends after a period of stagnation, with year-on-year growth in Australian retail turnover of 4.6% for the month of June 2017 and 3.6% year-on-year for the June quarter — which is up from a year-on-year rise of 2.6% to March 2017 — currently being predicted. This trend is projected to continue, with year-on-year growth figures for the months of August at 4.2% and September at 4.1% respectively.

The current lift in global trade, China’s demand for commodities, inbound tourism as a result of strong economic growth in Asia, and growth in Australian household wealth are all thought to have contributed to the recovery.

“After a period of relatively subdued retail trade, it is encouraging to see signs of some positive momentum. We have seen food retail spending, in particular, pick up and fill some gaps from weaker non-food retailing, with catered food driving most recent improvements. Household goods have been the best performer for non-food retailing,” said Tanya Barden, CEO of AFCG.

The AFGC CHEP Retail Index is a collaborative project between the AFGC and CHEP Australia, produced by Deloitte. To access the index and background information, click here or visit CHEP Australia’s CHEPedia portal.

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