Regional Victorian retail braces for a recessionary 2023

Thousands of tourists are keeping the cash registers ringing across regional Victoria. But what happens when they return home?

January is when Victoria’s holidaymakers sashay south to the coast for endless days of surf, sand and sunscreen.

Meanwhile, agri-enthusiasts head in the opposite direction, northwards to the Goulburn Valley for International Dairy Week.

Retailers in both southwest and north-central Victoria will enjoy a tourism-fuelled trading treat. But they say February will be the real test of retail sentiment.

Economists are predicting Australia will slump into recession - the first in three decades apart from 2020’s coronavirus-induced downturn.

Taylor's Surf Odyssey owner-operaors Max and Chris Taylor outside their Liebig Street store. Photo: Nicole Cleary

Along with son Chris, Warrnambool’s deputy mayor Max Taylor runs Taylors Surf Odyessy in the regional centre’s main street.

The retail veteran said January was always a busy four weeks for Warrnambool retail as caravans cruise down the Princes Highway to southwest Victoria.

“Yes, there are some concerns about a recession. But it’s hard to tell what will happen at the moment,” Mr Taylor said.

“January is always a good month not just for us, but for Warrnambool and the surrounding towns. Tourists are about and that provides some economic confidence.”

Tatura Mitre 10 manager Agit Shetty. Picture: Zoe Phillips

Viberts Mitre 10 owner-manager Ajit Shetty said his Tatura business is prepared for the influx of visitors from this weekend for International Dairy Week.

“It’s a great event for Tatura and the towns around the Goulburn Valley,” he said.

“We get people coming in buying bits and pieces here and there. There’s a lot of money spent by visitors and they come from overseas as well.”

Mr Shetty said retail conditions always settle in February providing an insight into the economic conditions ahead.

“February is when school goes back, everyone is back at work. That’s when we’ll find out (what the year) will be like for us,” he said.