Retails sales to grow by 3%, report says

By Keri Agler, Current.com.au

Compared with the pitiful 1.1 per cent growth recorded in December, the 3 per cent retail sales growth predicted to happen in the latter part of this year will be welcome news for retailers.

The Deloitte Access Economics report said household appliance sales will strengthen as the construction of new homes commenced in 2010 is completed later this year. In fact, household goods retailing is the “emerging good news story for the retail sector,” according to the report.

“We expect retail sales will continue to track slowly through the first half of 2011,” said Deloitte Access Economics partner David Rumbens.

“Better news awaits from mid-2011 onwards. One can’t ignore the recent surge in Australia’s income, and we suspect that over time, very low rates of unemployment should help to loosen the purse strings of consumers.

“So by the end of 2011 we expect to see retail sales tracking at a rate of 3 per cent sales growth – still not great by historic standards but far more buoyant than the current retail environment.”

This story first appeared on Current.com.au