National Retail spending showed a 2.62 per cent increase year-on-year, seasonally adjusted, according to figures released by the Australian Bureau of Statistics.

Monthly retail turnover rose 0.4 per cent in April to $26.557 billion, above the 0.3 per cent rise the market was forecasting.

Russell Zimmerman, executive director of the Australian Retailers Association, said, however, the latest figures showed disappointing results adding that the higher petrol prices and declining house prices were partly to blame for a soft April, with consumers tightening their belts to meet their household budgets.

“April’s figures are somewhat poor for the industry, with either flat or declining turnover across several key categories,” Zimmerman said.

Hardware and Building (5.33 per cent) and Cafes and Restaurants (4.86 per cent) led the year-on-year turnover growth in April, while Department Stores (-3.74 per cent) and Clothing (0.56 per cent) returned to their well-documented struggles.

Zimmerman said the unseasonably warm Autumn has impeded winter apparel sales, with a later-than-usual break in the weather pressuring retailers to begin early discounting to keep the tills ringing.

“The continued slide in the Department Store category shows no sign of abating, especially with its heavy reliance on Clothing and Footwear, which are also experiencing continual problems,” Zimmerman said.

He said that while Household Goods retailing and Cafes, Restaurants and Takeaway Food remain strong, overall growth has been weighed down by mixed results in Food retailing and Clothing and Department Stores going backwards.

Food Retailing grew by 3.45 per cent year-on-year, led by Supermarkets (3.62 per cent), however, Specialised Food (0.28 per cent) was flat, reflecting an earlier than usual Easter.

Across the country, Victoria (4.73 per cent), the Northern Territory (3.64 per cent) and New South Wales (3.55 per cent) showed the strongest year-on-year growth of all the states, while the Australian Capital Territory (2.85 per cent), Tasmania (2.82 per cent) and South Australia (1.76 per cent) remained steady. Western Australia (0.12 per cent) saw a slight increase for the first time in 2018. Queensland saw a major drop off, posting a 0.03 per cent rise to lag behind the rest of the country.

“We are hoping that relief will be just on the horizon for retailers, with the application of GST to overseas purchases under $1000 and potential income tax relief on the way from 1 July,” Zimmerman said. “Local retailers will finally be able to compete on a more level playing field once the GST changes come into effect, and we are hoping this will see consumers increase their spending in local stores.”

Dominique Lamb, National Retailers Association CEO, said the latest figures showed positive news following the sluggish start to 2018 for the sector.

“Retail turnover rose by 0.4 per cent in April, seasonally adjusted, which is an improvement on the March figures which showed no increase,” Lamb said.

“Each state and territory except South Australia recorded a rise in turnover, with the Northern Territory leading the charge with a 2.6 per cent increase.

“The ABS release shows strong sales for cafes, restaurants and takeaways which can be put down to the unseasonably warm weather many states experienced throughout autumn.

“Unfortunately, the results were not as good for department stores, and clothing, footwear and personal accessories that both recorded turnover falls of 0.9 per cent and 0.8 per cent respectively.”

Lamb said that with End of Financial Year (EOFY) sales beginning last week that fashion and department store sales should improve in June.

“The NRA is forecasting Aussie shoppers to splurge close to $26 billion during the EOFY sales period in June,” Lamb said. “With several department stores and fashion outlets slashing their prices between now and July 1, we are optimistic that sales in this area will pick up markedly in the month ahead.”

“We urge shoppers across the country to take advantage of many of the great bargains on offer as retailers attempt to clear stock before the end of the financial year.”

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