Victorians hit the shops and boost retail sales as restrictions eased in November

Retail spending surged in November, boosted by Victoria’s first full month out of lockdown and the spectacular success of Black Friday sales promotions.

Hilda Simonds in her deserted fashion boutique, Erika, in the heart of the Melbourne CBD … ‘we have been closing at 3pm, trying to save wages’. Picture: Aaron Francis

Retail spending surged in November, boosted by Victoria’s first full month out of lockdown and the spectacular success of the Black Friday sales promotions.

Turnover jumped a whopping 7.1 per cent to $31.7bn in the month, according to seasonally adjusted figures from the Australian Bureau of Statistics, against a 1.4 per cent increase in October.

In a year marked by wild swings in consumption, sales in November were 13.3 per cent higher than the same month in 2019. That marked the strongest year-on-year growth in more than three decades, excluding the period coinciding with the implementation of the 10 per cent goods and services tax in 2000.

Victorian retail turnover leapt 22 per cent as stores in Melbourne were allowed their first full month of trade after emerging from lockdown in October. Outside of Victoria, total sales climbed by 2.6 per cent, the ABS said.

The figures predate the minor outbreaks in Sydney’s northern beaches and other local areas around NSW leading up to Christmas, which led to heightened restrictions in those regions and triggered state border closures.

Greater Brisbane emerged from a three-day lockdown on Monday after a case in the city’s outer suburbs.

Analysts expect another solid month for retail trade in December, given a strong run into the festive season, although spending could decline on a monthly basis due to the strength in November.

CBA senior economist Kristina Clifton said she was “a little more cautious on the domestic economic outlook following Sydney’s outbreak and restrictions”.

“Jobs and business have been negatively impacted by the restrictions on the northern beaches and consumers have been reminded that the coronavirus pandemic is not over yet,” Ms Clifton said.

Economists were also quick to point out how unevenly spread the post-COVID recovery has been, with some areas, such as central business districts, suffering as the hoped-for return of office workers in 2021 was further delayed by the recent outbreaks.

Hilda Simonds used to be able to set her watch by the lunch hour rush of office workers streaming into her Little Collins Street boutique looking for gifts, a new dress or jewellery for a night out or a day at the races.

After being closed for seven months last year, the owner of Erika now faces having to abandon the store’s city location. She said Melbourne was empty with no office workers or tourists, and while trade picked up a little at Christmas, she has depended on her pop-up shop at a suburban shopping mall, where the best-selling item is a “glamorous trackpant”.

“I can’t see how it’s going to pick up,” Ms Simmonds said.

She has reopened her boutique with limited trading hours but she said Melbourne had ground to a halt and the few parking spaces out front had been reserved for the nearby cafes to have outdoor seating, despite no customers.

“It’s terrible. That’s why we have been closing at 3pm, trying to save wages,” she said.

“I’m worried about buying stock because it’s just going to sit there if no one’s there to buy it.”

The impact of even short shutdowns was evident in the 0.2 per cent decline in turnover in South Australia in November after the state imposed a three-day shutdown during the month.

Outside Victoria, Queensland reported a 4.5 per cent lift in retail spending, while sales climbed by 2.3 per cent in NSW.

Nationally, spending on clothing, shoes and personal accessories surged by 27 per cent in November, while department store sales jumped by 21 per cent. Household goods retailing continued to climb — up 13 per cent — while cafes, restaurants and takeaway services lifted by a more ­sedate 6.7 per cent.

“The release of new games consoles and new iPhones added to sales in household goods and other retailing, while Black Friday sales also contributed to the increase across a number of industries,” the ABS said.

The proportion of online sales continued to climb — up to 11 per cent of total retail in November, from 10.4 per cent in October and 7.2 per cent a year earlier.