According to ABS figures, retail sales were quite strong in Dec, with an increase of 3.9 % yoy. Looking at the different product categories, there was a clear divergence between household good retailing (clear increase* seasonally adjusted) vs a clear decrease for clothing, footwear and personal accessory.
Overall, there is a clear recovery for retail volumes : - 0.2 % in June quarter, + 0.5 % in Sept quarter and + 1 % in Dec quarter. Part of it is explained by lower price increases : + 1 % in June quarter, + 0.6 % in Sept quarter and + 0.4 % in Dec quarter. So, the volume increase probably mainly benefit companies which have a rather good pricing power.
So, in terms of companies, it is probably more favourable for companies like JB Hifi, Nick Scali and Shaver Shop. It also confirms that companies related to clothing and footwear continue to suffer.
* in particular for electrical and electronic goods as well as furniture.
