- Despite improvements in consumer confidence, retail sales in FY18 grew at their slowest annual growth rate in the 10 years since the GFC (2.5% compared to the 10 year average of 3.9%).
- Online sales growth accelerated in FY18 to growth not seen for the past six years. Consumers have greater access to products online as retailers are investing in their online offering and leveraging third party platforms.
- There was a distinct shift in performance of categories, suggesting spending pressure on discretionary categories.
- Despite a modest increase in sales, profits of many listed retailers declined in FY18, suggesting retailers are having difficulty in adapting to intense competition and changes in the industry.