Early end of financial year sales spark retail sales revival

Many retailers are discounting to drive sales and cashflow, and considering the most recent inflation figures, we expect these challenging conditions to continue for the rest of the year, as discussed by Brendan Rynne and James Stewart.

Retail trade in May beat market forecasts in rising by 0.6 percent boosted by shoppers taking advantage of early end-of-financial-year sales. Notwithstanding the seasonally-adjusted rise, underlying spending remains stagnant with retail turnover flat in trend terms. Compared to May 2023, trend growth is only up 1.5 percent and despite the increase in year-on-year terms (likely due to inflation and population growth), anecdotal evidence from discussions with various retailers suggests market...

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Authors: Brendan Rynne, James Stewart

Published Date: 04 July 2024