SALES in Sydney and Melbourne’s CBDs saw welcome increases over the last week, as Australians are remobilised following the end of major COVID-19 restrictions.
According to new CBA merchant terminal data, the Sydney CBD saw a 9% boost to sales over the week, while in Melbourne’s CBD sales were up 5% compared to the previous week.
In retail businesses week on week Sydney’s CBD saw a 30% increase, while in Melbourne there was a 31% rise.
The rise in spending is welcomed news as the CBA previously estimated that Australian households have amassed over $240 billion in savings during the pandemic.
“It is encouraging to see spending in Australia’s largest capital cities on the up and we hope to see this trend continue as more people start coming back into city centres over the coming weeks and months,” said Mike Vacy-Lyle, group executive of business banking at CBA Group.
The most prominent areas for increased spending in the Sydney CBD included a 55% increase for florists, as well as stationery and office supplies, while cosmetics saw a 38% increase, clothing alterations services were up 29% and bras and pubs increased by 15%.
While in the Melbourne CBD, jewellery and watch stores dominated with a 65% increase, followed by a 30% boost to electronic sales, fast food saw an 11% increase, gifts, cards and novelty store were up by 10% and beauty and barber shops saw a 7% increase in spending.
Vacy-Lyle did warn that the current weather conditions, including flash flooding across NSW is likely to impact this increased activity in the state’s city centre.
At the same time as Sydney and Melbourne record a positive turn around for retail, across the Brisbane CBD the reality of flood waters has of course left much of the city focused on clean up and recovery.
“More broadly, we know areas across Queensland and New South Wales will continue to navigate the devastating impacts of major flooding for the foreseeable future,” said Vacy-Lyle.
