SALES UP AS SHOPPERS FLASH DEBIT CARDS, SURVEY FINDS

Written on the 20 September 2012

SALES UP AS SHOPPERS FLASH DEBIT CARDS, SURVEY FINDS

TIGHT consumer spending has not stopped many Queensland businesses from growing their revenue, according to a new study.

And a growing number of shoppers are also purchasing on debit cards rather than through credit, the study found.

The Commonwealth Bank of Australia’s (CBA) business sales indicator (BSI) shows sales in the Sunshine State increased 0.1 per cent in August and 10.1 per cent over the past 12 months.

CommSec chief economist and BSI author Craig James confirms Queensland fared better than other states.

Sales fell by 1 per cent in New South Wales, 0.4 per cent in Victoria and 0.1 per cent in Western Australia.

“The soft spending figures are in line with other data showing conservative consumer behaviour, including the fact that the average credit card balance is up by just 0.2 per cent on a year ago and data showing that the use of debit cards continues to surge,” says James.

“It is these sorts of statistics that businesses will be keeping a close eye on in order to understand today’s smart consumer. Those that can adapt and tailor their offers for these individuals are those that will ultimately still perform strongly in this market.”

CBA’s local business-banking acting executive general manager, Gary McGrath, reveals Queensland’s BSI rose for 14 months in-a-row compared to 15 in the Northern Territory, 13 in South Australia and 11 in the Australian Capital Territory.

“[Businesses] need to ensure they are well prepared to continue dealing with a more absent consumer. That includes reviewing their business models and focusing on areas like productivity and efficiency to ensure they can control costs and maintain a healthy balance sheet,” he says.

Spending was strongest at wholesale distributors and manufacturers (up 26.1 per cent), mail order and telephone order (21.8 per cent) and service providers (17.5 per cent).

The weakest sectors were government services (-1.7 per cent), transport and automotive (-1.4 per cent) and airlines.


Latest News

BABY STEPS FOR BELLAMY'S IN TURNAROUND

GREEN shoots are appearing in the Bellamy's Organic (ASX: BAL) business in the early days of its turnaround.

T...

LOSSES MOUNT AT SLATER AND GORDON

SLATER and Gordon's losses continue to mount following its disastrous entry in to the UK market. The compa...

NVC PLAYS A DIFFERENT GAME, AND WINS

AS its profits rise, National Veterinary Care's (ASX: NVL) focus on training over retail is proving to be a wi...

SUPERLOOP $2M LOSS DOES LITTLE TO KILL SLATTERY'S CONFIDENCE

BEVAN Slattery (pictured) is optimistic that Superloop's (ASX: SLC) financial position is promising, despite t...

Related News

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter