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Retail sales at its strongest since 2010, AFGC CHEP Retail Index

The 12th edition of the AFGC CHEP Retail Index was released today indicating that retail sales have enjoyed its strongest growth year-on-year since early 2010.

The Index was 4.2 percent higher in December 2013 compared to the same period in 2012, with the December quarter scoring an overall 4 percent increase in 2013 compared to 2012.

The Index suggests that growth is likely to sustain throughout early 2014 with a forecast of a 4.2 percent year-on-year increase for the month of February 2014. The March quarter 2014 is also forecast to increase by 4.2 year-on-year.

CEO of the Australian Food and Grocery Council, Gary Dawson said that strengthening growth during the 2013 Christmas trading period appears to have been better than analyst had expected.

“The combined effect of low interest rates and improved consumer confidence after the Federal election has seen retailers experience a stronger-than-expected rise in retail sales over the past few months,” said Dawson.

“Retailers will be hoping that the labour market also strengthens to support a return to a genuinely strong retail environment.”  

The Index’s findings are consistent with retail trend data from the Australian Bureau of Statistics which demonstrated that year-on-year growth in nominal retail trade had increased by 4.1 percent over the year to November 2013.

“The strong growth since August 2013 is a welcome change,” said CHEP Australia and New Zealand President, Phillip Austin.

“We’re delighted that the retail industry experienced a stronger than forecasted Christmas peak and that the uplift can be expected to continue into the March quarter of 2014. With our network size and scale, CHEP fully supported our retail customers through this upswing, and is well positioned to meet the additional demand for pallets, produce crates and retail display solutions resulting from the increase in retail trade.”

 

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