CHEP Retail Index forecast 2013 retail growth to remain moderate
Retail spending growth will remain steady heading into 2013, according to the AFGC CHEP Retail Index released today.
The Index showed 3 per cent growth in December 2012 compared with December 2011. Looking ahead, this level of year-on-year growth is expected to hold steady in February 2013, when compared with February 2012, and then also in the 2013 March quarter – with both forecast to be at 3 per cent.
In dollar terms, retail trade turnover is expected to rise moderately, from $21.5 billion in December 2012 to $21.6 billion in February 2013.
Australian Food & Grocery Council (AFGC) Chief Executive, Gary Dawson, said: “The AFGC CHEP Retail Index suggests that the start of 2013 is unlikely to produce the lift in sales retailers have been hoping for; however, some support could come from low interest rates and the increase in consumer confidence that often accompanies this.
“Trading conditions remain challenging for food and grocery manufacturers. Planned capital investment to improve efficiency and productivity and a focus on innovation to capitalise on expanding Asian markets will be among the priorities for the industry in 2013.”
CHEP Australia & New Zealand President, Phillip Austin, said: “In what is at best a moderate growth environment, businesses are under increasing pressure to increase efficiencies and find new ways to meet their customers’ needs. In 2013, at CHEP, we will be focusing on helping our customers do both through their supply chains.”
The AFGC CHEP Retail Index is a collaborative project between the AFGC and CHEP Australia, powered by Deloitte. The Index uses CHEP transactional data based on pallet movements and is a lead indicator of ABS Retail Trade data.
The next AFGC CHEP Retail Index will be released in late April 2013.
Download the CHEP Retail Index