Australian retail sales fall 0.4 per cent in March as Taylor Swift effect proves to be temporary

Australian retail sales fell 0.4 per cent in March, according to new data, with the Taylor Swift effect in the previous month proving to be temporary.

The decline in turnover followed a 0.2 per cent rise in February and a one per cent lift in January, according to the Australian Bureau of Statistics on Tuesday.

“Consumers pulled back on retail spending in March as cost of living pressures remained high,” ABS head of retail statistics Ben Dorber said.

“Underlying retail turnover has been flat for the past six months and was up only 0.8 per cent compared to March 2023.

“Outside of the pandemic period and introduction of the GST, this is the weakest growth on record when comparing turnover to the same time in the previous year.”

The largest falls were recorded in the clothing, footwear and personal accessories category, down 4.3 per cent, and department stores, down 1.6 per cent.

Both spending categories recorded large rises in February which have now been mostly cancelled out by these declines.

“The Taylor Swift-inspired boost in turnover for fashion and accessory retailers last month has proved to be temporary with an instant reversal this month,” Mr Dorber said.

The other categories that recorded falls were household goods (down 1.4 per cent), other retailing (down 0.3 per cent) and cafes, restaurants and takeaway food services (down 0.2 per cent).

Across the States, NSW and Victoria recorded the largest falls — down 1.1 per cent and 0.8 per cent, respectively — and drove the overall fall this month after recording large rises in February. Results across other States were modest, with WA up 0.6 per cent in March.

“The falls in New South Wales and Victoria are larger than the rises last month when both states benefited from increased spending associated with the Taylor Swift concerts.” Mr Dorber said.

More to come.