The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
25 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
25 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
2
print
Print
RetailTed TabetMon 09 Nov 20

Victorian Retail Sales Rebound Post-Lockdown

b8ce8353-f2e3-4335-83c5-820c2b3db74e

Melbourne retail sales have rebounded strongly after the city reopened following 12 weeks of hard lockdowns.

According to data from the Melbourne-based Kepler Analytics, which users sensors to monitor in-store movement and activity, retail sales lifted by 37.5 per cent over the eight days of trading days since Victoria's reopening.

Over the last week, sales conversion lifted 180 per cent while transactions increased by 25 per cent, despite a huge reduction in comparative period traffic.

“The reason for growth is not traffic,” Kepler Analytics managing director David Mah said.

“Shoppers are not rushing back to the shopping precincts to browse and while away the day.

“We can draw a conclusion that the people in the shopping precincts are entering with more intent and lists most days.”

Kepler found that outside foot traffic—the number of people passing retail stores—remained down 40 per cent on the same time last year while inside foot traffic—the quantum of people entering stores—also remained depressed.

The shift in shopping habits triggered by the pandemic has continued to have ramifications not only for retailers but landlords and investors.

Retailers hurt by the pandemic, and those seeing a shift away from bricks and mortar sales to digital, are not only seeking rent relief but a move towards shorter-term leases and rents based on a percentage of sales, rather than foot traffic.

▲ Melbourne retail stores have been closed for months. Image: Andrew Henshaw


Landlords are also eyeing the growth in e-commerce and are keen to clip the online ticket.

Victoria is now the only state or territory where retail trading lags last year's levels.

Following a 12.6 per cent fall in August when the stage four restrictions in Melbourne were introduced, Victoria recorded only a small monthly fall across September.

Recent figures released by the Australian Bureau of Statistics revealed that retail turnover for the month of September fell 1.1 per cent nationally in seasonally adjusted terms compared to figures recorded over August.

However, at $29.1 billion for the month, they remain ahead of the $27.6 billion recorded in September last year.

The ABS said the fall in monthly retail turnover was largely due to falls in food and essential goods consumption, but cafe, takeaway and restaurant services rose 3.5 per cent, while department store retailing rose 1 per cent.

Despite the fall in September, retail trade added around 1.4 per cent points to GDP growth across the September quarter, posting their biggest quarterly percentage gain since records were kept in 1983, lifting by 6.5 per cent.

ANZ economist Adelaide Timbrell said while retail sales had lifted in recent months, overall household consumption was unlikely to be quite as strong because people were still spending less on services such as entertainment and travel.

“We expect to see retail’s share of household spending to be elevated through fourth quarter as the reopening of Melbourne is likely to have a considerable positive effect,” Timbrell said.

Combined with the Reserve Bank’s recent interest rate cut, which has rekindled consumer confidence, economists are now eyeing the approaching holiday shopping season which they expect will bring a wave of reprieve to businesses impacted by the pandemic.

Uncertainty has also continued to surround the state budget with premier Daniel Andrews declining to say when it would be delivered.

RetailAustraliaMelbourneSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
View All >
Rumi on Louth Villa aerial view
Hotel

Rumi Resort Plots Cabins for Villas Switch on SA Island

Leon Della Bosca
Justin Butterworth will speak on a panel at Urbanity 2025 on the Gold Coast.
Technology

Platforms Pump Up Rental Revolution: Justin Butterworth

Renee McKeown
Sherpa South Brisbane DA hero
Development

Sherpa Shifts Gaze from Beaches to Brisbane’s ‘Aria Territory’

Phil Bartsch
The Gold Coast-based developer has put its foot on a South Brisbane site and plans a 28-storey residential play…
LATEST
Rumi on Louth Villa aerial view
Hotel

Rumi Resort Plots Cabins for Villas Switch on SA Island

Leon Della Bosca
4 Min
Justin Butterworth will speak on a panel at Urbanity 2025 on the Gold Coast.
Technology

Platforms Pump Up Rental Revolution: Justin Butterworth

Renee McKeown
4 Min
Sherpa South Brisbane DA hero
Development

Sherpa Shifts Gaze from Beaches to Brisbane’s ‘Aria Territory’

Phil Bartsch
3 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/victorian-store-reopening--strong-sales-low-traffic