Store closures boost online sales.

 

Australian retail sales slumped in April after a record ‘panic buying’ surge the previous month.

 

Widespread restrictions to curb the spread of the COVID-19 virus hit demand across most major consumer categories, according to the latest Australian Bureau of Statistics (ABS) report.

 

The ABS said its preliminary estimate of retail sales plunged a seasonally adjusted 17.9 per cent in April, its biggest ever, from an 8.6 per cent jump in March.

 

The figures showed heavy falls in every industry, with turnover in clothing, and cafes, restaurants and takeaways around half the level of April 2019.

 

Strict social distancing rules began in mid-March, forcing many businesses to close. While some restrictions have eased this month it will be a while before activity fully returns.

 

Transaction data from the big four banks showed consumer confidence has recovered some ground, but economists do not see a fast recovery.

 

The ABS said online retail posted a "strong result", and made up 10 per cent of total retail sales in April, compared to around seven per cent in March.

 

Westpac estimated that online retail sales jumped by over 20 per cent in April, with traditional 'in store' retail sales falling by roughly the same amount.