Gain were enjoyed across the sector as JB Hi-Fi shares closed up 5.29 per cent at $24.48 and Harvey Norman rose 5 per cent to $3.99, Super Retail Group, owner of Rebel Sports, was up 4.07 per cent to $8.44, and Premier Investments up 2.94 per cent to $12.95.
The stand out listings traded on the ASX captured at key moments through the day, as indicated by the time stamp in the video.
Figures released by the Australian Bureau of Statistics show total retail sales grew 0.6 per cent in May, using seasonally adjusted terms, beating the market’s estimate of a 0.2 per cent rise.
Household goods, including furniture and housewares, were the standout segment, growing at 2.2 per cent, with electronic products jumping the most at 2.8 per cent.
Apparel and accessory sales grew 1.3 per cent, but Australian Retailers Association chief executive Russell Zimmerman said that was likely driven by heavy discounting. Department stores still took a hit in May, with turnover falling 0.7 per cent.
Retailers discounting goods
“We think retailers have done it very tough in clothing and footwear. So to see it rise year-on-year we think that’s retailers discounting heavily to get consumers to buy,” Mr Zimmerman said.
“If it is driven by sales activity we’ll probably see a little bit of a slowdown in June as consumers start to suffer from sales fatigue, and it will probably then show up in weaker profit margins when [retailers] report their second halves,” Mr Salligari said.
Citi analysts said a cooling in new housing construction suggested growth in related retail spending would not continue.
Deutsche Bank economist Adam Boyton said it appeared the rate of retail sales growth had picked up, averaging 0.5 per cent month-on-month over the past three months, compared to 0.1 per cent from December to February.
That growth was at odds with consumer sentiment, Mr Boyton said.
“As a result, we would expect a softer pace of growth in retail sales over coming months,” he said in a note to clients.
“We also expect utility price increases from July 1 to have a negative impact on sentiment, ‘free’ household cash flows and consumer spending as we move through the September quarter.”
Year-on-year growth in electrical goods (5.80 per cent) had been boosted by the release of new products in late April, particularly Samsung’s new range of QLED televisions, Mr Zimmerman said.
Article Source – News.com.au