MNI REALITY CHECK: Aussie June Sales To Edge Higher

Australia's June retail sales data are expected to be higher, in line with the preliminary reading of s 2.4% m/m rise, although below the levels seen in May, when sales snapped back by a stellar 16.9%. However, retailers warn the June report could be the last of the better numbers for a while, as July data will almost certainly be pressured lower by the renewed lockdown in parts of the country.

Melbourne went into stage four lockdowns this week as the daily number of positive Covid-19 cases increased sharply and only retail outlets deemed essential are now permitted to open.

With the city representing around 25% of the national economy this will inevitably be a big hit going forward, impacting on discretionary spending.

Many who saw the tough retail environment in the early months of the coronavirus outbreak certainly see the improvement since May. One retail manager saw the improvement, with a return of consumer confidence.

"Sydney retail was definitely impacted but it's on its way back," he said.

"Customers are telling us that they are more comfortable with the safety and hygiene measures at our centres, and now that restrictions have eased the visitations are steadily increasing," the manager added.

DROP OFF

Stephen Smooker, a bar owner in Newtown, Sydney, said there had been a pick-up in business as the lockdowns eased, but that has slowed markedly.

"We did really well when the lockdowns ended, but numbers have been down lately because I think everyone can feel the virus creeping closer," he said.

"People were really keen to get out and get back to normal when the lockdowns ended, but even in Sydney there are more cases and I think its really preying on everybody's mind," he added.

There was certainly a lowered expectation for further consumer demand in coming months.

"The mood is not quite as up as it was a month ago, that's for sure," he said.

VICTORIA LOCKDOWNS

In Melbourne, there was a similar pattern emerging as back in the days of late-February and early March, when the pandemic first pushed across Australia.

"We're back to the same place we were a couple of months ago, with the panic buying," said the manager at an IGA supermarket in Melbourne

"The queues are insane and we have some empty shelves again," he noted.