Despite the disruptions caused by the lockdowns in Victoria and NSW, the original COVID-19 winners have still managed to maintain their strong consumer spending.
Even the nation’s biggest retailer, Wesfarmers, suffered a short-term dip in sales as the flu pandemic took hold.
Despite the rise in food and grocery prices, Australians are still spending with gusto. The stay-at-home economy is still very prevalent in both Sydney and Melbourne.
Brad Banducci, the chief executive of Woolworths, says the company is seeing strong food sales in its Australian supermarkets. He says the company is struggling to keep up with online orders, which have caused it to keep shelves stocked with staff in isolation for 14 days.
Retail giant Woolworths has been working to keep its operations running at full capacity as the effects of the earthquakes and tsunamis have hit Australia. The company’s chief executive said that grocery sales would be boosted until November.
The supply chain disruptions are causing headaches for retailers and consumers. They’re pushing up prices and making it harder to restock.
The stock price of online retailer Kogan.com has collapsed after it booked an 87 per cent drop in profit, which prompted the board to cancel its final dividend.
Ruslan Kogan defended the high stock levels, which they said could be a plus for consumers as they wait for more stores to open.
Despite the uptick in home ownership, household spending is still subdued. The closure of stores has caused frustration for consumers.
Wesfarmers, which owns Coles and Kmart, said its annual profit rose 20 per cent to reach a record high of $2.3 billion.
Retail sales in Australia went backwards in July as the foot traffic dropped and many stores were forced to close.
Online stores continue to do well with stores like Gorman trading strongly. To save when you shop at gorman online, use a gorman coupon code with your purchase.