By Keri Algar
SYDNEY, NSW: Retravision retailers have been impressed with the amount of discretionary spending during June and July, with whitegoods the big winners. This news runs contra to there being only a slight right in the Consumer Price Index (CPI).
Speaking to a number of Retravision retailers across NSW, Current.com.au found the majority of stores surprisingly recorded a slight increase in consumer electronics.
Most notably, retailers experienced an excellent June due to the end of the financial year, followed by an “exceptional” take off into July.
One Retravision store said whitegoods “are the go” and that they were “surprised by the amount of money actually out there.”
Another rural Retravision store claimed there has been a “fair run on refrigeration sales for this time of year,” which provide more margins than televisions. While televisions are “running out the door” the store owner said margins were being hammered by consumer promotions in addition to industry undercutting.
The CPI rose a feeble 0.6 per cent for the June quarter, according to statement yesterday from the Australian Bureau of Statistics (ABS).
Growth was undermined by significant offsetting price falls recorded for audio, visual and computing equipment (–6.3 per cent), as well as domestic holiday travel and accommodation (–6.0 per cent), and fruit (–4.8 per cent).
The June quarter experienced a slight deterioration in the audio, visual and computing equipment category, down 0.4 percent from the March quarter, but on par with an overall CPI abatement of 0.3 per cent.
Speculation that this result may hold interest rates steady is welcome news for retailers.