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The state of the economy at the street level

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The Australian retailers Association has put out a press release on the state of retail sales.
Australian retail sales increased 2.6% in April compared to the same time last year – but most retail categories have experienced double-digit declines – according to the latest Mastercard SpendingPulse™, which measures in-store and online retail sales across all forms of payment.

The total growth was driven by Grocery (up 8.5%) and Restaurants (up 8.0%); the only categories to record growth in April, year-on-year.

With cost-of-living pressures impacting spending there were double-digit spending declines across all other categories: Jewellery (down 21.1%), Home Furnishings (down 17.5%), Electronics (down 15.9%) and Lodging (down 14.8%).

Apparel (down 9.1%) and Fuel and Convenience (down 8.9%) also saw decreases in spending compared to April 2022.

Australian Retailers Association CEO Paul Zahra said, “the results suggest the country’s cost-of-living crisis is now deterring retail spending”.

“Most categories are recording significant declines now compared to 2022, with households across Australia saddled with mounting cost-of-living pressures and consecutive interest rate rises,” Mr Zahra said.

“We believe that April’s sales growth is predominately driven by price increases on food essentials which make up the lion’s share of retail spending.

“Most retailers thrived last year, with low interest rates and high household savings leading to robust spending growth. It isn’t surprising to see these declines today when compared to a successful period in 2022.

“With discretionary purchasing slowing significantly, it will be a challenging environment for businesses – especially those on tighter margins. Retail businesses are simultaneously battling rising operating costs associated with increasing cost of debt, fuel, energy, labour, supply chains and rent.”
So basically they are saying everything went down big time except for Grocery items and restaurants (which of course use grocery items).
The big losers were the big ticket items.
Everybody has to eat.
I guess if basic foodstuffs are still going up, something else has to give.
mick
 
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So basically they are saying everything went down big time except for Grocery items and restaurants (which of course use grocery items).
The big losers were the big ticket items.
Things people can delay purchase of are down and things people don't actually need at all, like jewellery, are down even more.

That's textbook recession behaviour with the only surprise being the magnitude of the declines. 21.1% or 17.5% are massive falls and once inflation is factored in it's even larger in terms of actual product quantities rather than $ spent. :2twocents
 
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When you get to my age you probably have everything you ever wanted/needed
The only thing left is the Thrill of Buying and Selling Shares IMHO
It keeps you alive!
This May Sound like a Sad Story but It Is Not

I just Love it

BTW I think the recession has passed us by and we are now in recovery

Salute and Gods' Speed
XYZ Yacht.GIF
 
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Well things must finally be slowing down, one of the tilers I asked for a quote (and I asked everyone that advertised locally) finally said he will re tile the shower, where I had to repair a burst pipe in July 2021.
That's not bad nearly two years to get someone to do a small job, even so to replace strip the 1m sq shower recess which has two walls and reuse the existing screen and door, is $3k.
So obviously not many tilers have come in with the 700,000 skilled immigrants and forced down wages. ?

Now I just have to hope he comes back and does the job, I have had heaps say yes i'll do it and never turn up.:xyxthumbs
 

moXJO

menace to society
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Well things must finally be slowing down, one of the tilers I asked for a quote (and I asked everyone that advertised locally) finally said he will re tile the shower, where I had to repair a burst pipe in July 2021.
That's not bad nearly two years to get someone to do a small job, even so to replace strip the 1m sq shower recess which has two walls and reuse the existing screen and door, is $3k.
So obviously not many tilers have come in with the 700,000 skilled immigrants and forced down wages. ?

Now I just have to hope he comes back and does the job, I have had heaps say yes i'll do it and never turn up.:xyxthumbs
Paying ridiculous prices for materials. I might import a bunch of stuff.
 
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Paying ridiculous prices for materials. I might import a bunch of stuff.
Plenty are. ? ? ? ? just joking.
What was the old Robin Williams quote: "Cocain is gods way of telling you, you have too much money"
Very good accurate article on the state of play and confirms what an ex user I know told me about it.
Don't worry there is plenty of cash still floating around Australia's economy. He told me a few years ago, a $600/day habit takes some feeding.:xyxthumbs


He’s in a lucrative market. Australians are the highest per capita users of cocaine in the world – 4.2 per cent of Australians aged 14 and over used cocaine in 2019 – and as an island nation, pay some of the highest prices globally.
“When I was young, I grew up in housing commission and I saw dealing as like a way out. I saw my mates doing it, and how they started making money fast, buying cars, and nice clothes and stuff. I thought, ‘F*** if these guys can do it, why not me?’”
While he waits for his order to be dropped off, he prepares “cutters” — fake cocaine that he uses to dilute the drug and “rip off” clients.
This will be mixed with the product he gets to maximise his profits, or he’ll bag it up and sell it to people he doesn’t know in a nightclub or bar.

“Probably got around a gram and a half there of Panadol. So I’d charge about $650 if I’m doing a rip,” he says.
 
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I've noticed that any company that direct debits a regular payment now seems to be routinely sending a "reminder your account will be debited in x days" email or text before doing so.

I've never had a direct debit declined so I assume it's something they're just sending to everyone, presumably because there's an increase in debits failing?

Assumptions there but it's a change, they haven't always done that. :2twocents
 
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I've noticed that any company that direct debits a regular payment now seems to be routinely sending a "reminder your account will be debited in x days" email or text before doing so.

I've never had a direct debit declined so I assume it's something they're just sending to everyone, presumably because there's an increase in debits failing?

Assumptions there but it's a change, they haven't always done that. :2twocents
Maybe just so that you feel special @Smurf1976 ?
And you are right..here as well especially with AGL..even text message...
 
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Just went to one of the top..dear for the frog.. restaurant in Noosa last night.own little celebration...
Shock full.midweek,out of holiday season.surprising but this is Noosa
Have to say : hard to spot anyone below 40y old in the restaurant but that might always be the case....
Same for regional NSW Bowral last week on a Wednesday around 7pm. Streets were lined with cars. Restaurants were full with oldies, also above 40 years old.

Haven't noticed the old people thing before, so it stood out as an anomaly.
 

Dona Ferentes

On this day..
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Same for regional NSW Bowral last week on a Wednesday around 7pm. Streets were lined with cars. Restaurants were full with oldies, also above 40 years old.
We had our work conference in Bowral a few years ago.... midweek. Anyway, after a (good) pub meal we went to the bar. There was a singer guitarist.... A good evening, the boss slipped him a C to play on and into the night we partied on, with the regulars. Midnight, and we all spilled out. Us out-of-towners said, "is it like this all the time". Locals laughed , nope!

Haven't noticed the old people thing before, so it stood out as an anomaly.
Other than ASF, oldies are an anomaly
 
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JohnDe

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Seeing a few retail businesses shut down in high traffic areas

I’m definitely seeing a slow down in road traffic. A large and well established restaurant/cafe was visibly showing signs of lack of patronage, on Friday night I noticed it has had a name change, paint and signage saying ‘all functions caters for.
 
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