Retail sales posted record surge as coronavirus shutdowns loomed

The Australian

PATRICK COMMINS

APRIL 22, 2020

Hoarding of groceries like toilet paper, rice and pasta drove the biggest ever monthly jump in retail spending in March, ABS data shows.

The preliminary reading of turnover by the Australian Bureau of Statistics, measured on a seasonally adjusted basis, “indicate unprecedented demand in the food retailing industry, with strong sales across supermarkets, liquor retailing and other specialised food,” the report said.

Spending in supermarkets surged 22 per cent.

Sales of toilet paper, tissues, pasta, flour and rice doubled versus the previous month. Monthly turnover for canned food, medicinal products and cleaning goods increased by more than 50 per cent, the data, in original terms, showed.

Total turnover lifted $2.2bn to over $30bn in the month.

In addition to the borderline panic buying in essentials, Australians also spent big on items to set up home offices, the ABS said, as social distancing measures introduced later in the month drove a massive increase in working remotely.

Unsurprisingly, there were solid falls in industries including cafes, restaurants and takeaway food services, and clothing, footwear and personal accessory retailing. These were “impacted by new social distancing regulations introduced in March”, the ABS said.

The impact of the more severe restrictions, introduced from March 23, will be clearer in the April figures.

There was evidence that last month’s hoarding peaked in mid-March, the ABS said, before levelling off, suggesting there may be some payback in next month’s supermarket sales as households find they have more toilet paper than they need.