Seven sold-out Taylor Swift concerts lift February retail spending but underlying picture grim, ABS reports

Taylor Swift’s seven sold out concerts in Sydney and Melbourne boosted national retail spending last month but behind the sequins and friendship bracelets, spending overall has stagnated.

Though the mania around the superstar’s concerts didn’t lift inflation, spending on clothing, merchandise, accessories and dining out was all higher in February compared to January, the Australian Bureau of Statistics on Thursday reported.

Overall spending nationally was up 0.3 per cent, but ABS head of retail statistics Ben Dorber said once the Swift-effect was excluded, growth was up just 0.1 per cent.

“After a period of higher volatility from November through to January, underlying spending has stagnated,” he said.

“Fashion and accessory retailers told us offerings of Taylor Swift inspired outfits and related do-it-yourself accessories added to turnover in February.”

Spending growth in February was lifted by clothing, footwear and accessories, up 4.2 per cent, while department stores experienced a 2.3 per cent lift.

Cafes, restaurants and takeaway food services were up 0.5 per cent which Mr Dorber attributed to the Taylor Swift concerts.

“Consumers are still prepared to spend at large social events as seen last month with the big crowds at the tennis and cricket,” he said.

States leading the spending growth were Victoria (0.7 per cent higher) and NSW (0.6 per cent higher), benefiting from a huge influx of visitors and locals attending the concerts.

Spending was lower in Queensland and Tasmania, and up modestly in WA and SA by 0.3 per cent and 0.2 per cent, respectively.

“Weakness in the retail environment has continued into early 2024,” AMP deputy chief economist Diana Mousina said.

“While one-off events like sport or concerts can cause a temporary rise in retail spending, it isn’t strong enough to offset the broader pressures on the consumer of high interest rates, elevated — albeit slowing — inflation and the increasing tax burden from bracket creep.”

Australian Retailers Association chief executive Paul Zahra confirmed consumers were still cutting back on spending.

“The ongoing cost-of-living pressures and interest rate ramifications are making it a challenging period for those in the discretionary retail sector,” he said.

“While food spending remained constant, there has been a shift towards more affordable and value-oriented products in recent months.”