Deloitte: Australian retail faces worst year on record

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Deloitte Access Economics has forecast that the coronavirus pandemic will see the Australian retail sector’s turnover fall by 1.4% in 2020.

Deloitte partner David Rumbens says the easing of lockdown restrictions has boosted retail spending in May and June, but he warns that this upturn may not be sustained. In particular, factors such as the looming withdrawal of stimulus measures such as the JobKeeper scheme may impact on discretionary spending later in the year:

“Australian retailers are facing the fight of their life in 2020″… Hundreds of thousands have lost their jobs and “spending behaviour has been tipped on its head,” according to Deloitte Access Economics partner David Rumbens…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.