Retailers can expect a period of minimal retail sales growth in the second quarter of 2018, according to figures published in the latest edition of the quarterly CHEP Retail Index. The index uses transactional data from CHEP pallet movements to provide a lead indicator of Australian Bureau of Statistics retail trade data. 

In the past three months, retail sales growth has been moderate, with a weak result for December 2017 followed by solid growth in February. Yet, in annual terms, retail sales growth has been improving since hitting low around September last year. 

Looking ahead, partner at Deloitte Access Economics, David Rumbens, believes the economic environment supports a modest improvement in retail sales in 2018, noting “a particularly weak patch for retail sales in the second half of 2017 appears to be behind us, and the stunning growth in employment that we continue to witness should lend some support to retail spending in the near term.”

Index: Key figures 
•    2.6% year-on-year retail turnover growth of $26bn to the month of March 2018, with year-on-year figures for the month of May static at 2% consistently.
•    On a quarterly basis, 2.6% year-on-year growth for the March quarter and moving to 2.3% year-on-year for the June 2018 quarter.

The CHEP Retail Index analysis and commentary is provided by Deloitte. The April 2018 Index and previous editions of the Index can be found at CHEP Australia’s CHEPedia portal.

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