Australian Retail Spending in 2022: A New Record
In 2022, Australians set a new spending record in the retail sector, totaling $353 billion, marking a 9.2% increase compared to the previous year.
With the absence of COVID lockdowns for the first time in years, consumers found themselves with extra disposable income and were eager to make up for the experiences they had missed out on during the preceding two years.
As shoppers gradually returned to in-person activities, the growth of online retail was somewhat subdued compared to the overall retail market. Online sales reached $63.8 billion, a modest 1.7% increase from the previous year, accounting for 18.1% of the total retail expenditure. Despite a year of robust expansion, the retail landscape is evolving rapidly.
The surge in inflation has led to higher prices, prompting consumers to tap into the savings they had accumulated during lockdown periods. It is expected that price inflation will ease in 2023, potentially resulting in a deceleration of retail sales. Consumers are anticipated to exercise caution in their spending decisions, especially as interest rates begin to rise.
In this changing landscape, the key drivers of continued growth in the retail sector will be innovation, resilience, and the development of novel strategies to engage with customers.
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