May 29, 2024

KEPLER RETAIL MARKET INDEX (KRI) Month Ending 26/05/2024

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Monthly KRI Summary

Discover key insights in the latest KRI (Kepler Retail Market Index) for the Month Ending 26th May 2024.

Australian Retail Foot Traffic and Sales in May 2024 Continues to
Show Improving Trend

  • The improving trend in retail foot traffic and sales that we saw in April has continued into May (four retail weeks from 29th April to 26th May). This should give retailers some cautious optimism as we head towards the second half of the year, with tax cuts around the corner.
  • In March, we saw retail sales down 6.4% YoY which moderated to a decline of 3.3% YoY in April. May has delivered a similar result to April, with retail sales down 3.5% on May 2023. When we compare May 2024 vs May 2022, retail sales are down 5.7%. 
  • The three best sales months of FY24 YTD (from a year-on-year perspective) have occurred in the last four months (February, April and May) providing some optimism for future trading performance.
  • Passer-By Traffic remains depressed, down 9.6% YoY (down 15.2% versus May 2022)May was the second weakest month of the calendar year, with March down 12.4% YoY.
  • Strong growth in Shopfront Conversion (+6.7% May YoY) has resulted in Inside Store Traffic being down only 3.5% YoY in May. This ongoing improvement in Shopfront Conversion (+7.1% YoY over the last 12 months) reflects a sustained change in consumer behaviour. Consumers are now much more purposeful in their shopping missions than two years ago. 
  • In May, we have seen a significant improvement in Sales Conversion Rates (SCR). In January and February, SCR was down around 7-8% YoY which moderated to -5% YoY in March and April. In May, SCR was only down 1.6% YoY which was the best month of FY24 YTD. 
  • From the State perspective, Queensland and Western Australia performed strongest with sales down 1.4% and 1.3% respectively (versus the national average of -3.5%). 
  • During Mother’s Day week, valueseeking consumers were more likely to get gifts for mum from outlets this year, with sales up 8.0% on last year in metro outlets and up 5.7% in regional outlets. Health, Beauty & Wellness and Watch & Jewellery remain popular gifting categories with sales up 46% on the week prior. However, this year the more valueconscious consumer was shifting away from Watch and Jewellery purchases (down 14% on Mother’s Day week last year) and towards Health, Beauty and Wellness (up 3.0% on Mothers’ Day last year) and Activewear apparel (up 1.4% on Mother’s Day last year).

About Kepler’s Retail Market Index 

  • Kepler’s Retail Market Index provides the most insightful and most timely view of retail industry performance across both Australia and New Zealand 
  • The index is based on anonymised data from Kepler’s Retail Foot Traffic Solution customers, primarily non-food specialty retailers 

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Did you miss our webinar? 

Get insights on Australia’s retail conditions by watching our first 2024 webinar. Danny French, David Mah, and Kylie Smart share detailed information on the Christmas and New Year trading conditions and the retail outlook for 2024.