Retail sector rebounds with sales soaring 17pc in May

Retail trade soared back to life in May after crippling coronavirus closures, posting an historic 17pc jump in turnover.

Pitt Street Mall in Sydney was alive with shoppers as COVID-19 restrictions eased. Picture: David Swift

Retail trade soared back to life in May, with turnover jumping nearly 17 per cent amid an easing of COVID-19 restrictions which had forced many stores to close.

Seasonally adjusted numbers from the Australian Bureau of Statistics shows retail turnover volumes for May surged by 16.9 per cent compared to the previous month.

It was the largest monthly surge on record, according to Westpac.

It came after a 17.7 per cent plunge in April, when retailing fell off a cliff because of a collapse in household consumption.

“The gradual easing of social distancing regulations, and the reopening of physical stores, bolstered retail trade in May,” said Ben James, director of the ABS’s quarterly economy wide surveys.

“Retailers across a range of industries reported high numbers of consumers returning to stores, with some retailers noting levels similar to those seen in December.”

Clothing and footwear retailing experienced a significant upswing of 129.2 per cent, while department stores posted a monthly rise of 44.4 per cent.

Cafes, restaurants and takeaways services booked a month-on-month increase of 30.3 per cent. Total food retailing in seasonally-adjusted terms rose by 7.2 per cent.

The hospitality industry is still struggling to return to former levels because of patronage restrictions in most states and territories.

The ABS figures also revealed that online sales contributed to 10.1 per cent of total retail turnover in May, a 1 one per cent drop compared to April.

Western Australia had the largest increase in turnover volumes for the month of May at 19.7 per cent, followed by Tasmania which rose by 17.3 per cent.

Victoria also experienced an increase of 17.2 per cent for the month, while all other states and territories turnover rates were below the national average.