Woolworths, JB Hi-Fi, Myer see retail growth

Retail sales rise in April — who are the biggest winners and losers?

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The widely followed Australian Bureau of Statistics (ABS) monthly Retail Trade data has been released and the figures show turnover rose 0.2% in April. The categories providing the largest positive contributions were food retailing followed by clothing, footwear and personal accessories. Offsetting these growth categories were the detracting categories of department stores and household goods.

The ABS data provides an interesting comparison with the most recent commentary available from major retailers.

David Jones (ASX: DJS) like-for-like sales fell 3.4% in the third quarter compared with the previous corresponding period (pcp). Management explained some of this fall by reducing the level of discounting and exiting low productivity categories. In contrast, Myer (ASX: MYR) recently reported growth in comparable store sales for its third quarter of 0.4%. This made it the fourth consecutive quarter of positive comparable store sales growth for Myer.

Woolworths (ASX: WOW) in its third-quarter sales update showed why it is one of Australia's top retailers. The company grew comparable store sales in the Australian Food and Liquor division by 3.1%. Meanwhile, JB Hi-Fi (ASX: JBH) has continued its solid performance. In early May the company updated the market with news that for the four months ended 30 April 2013, its comparable store sales growth was 3% on the pcp.

Lastly, Harvey Norman's (ASX: HVN) results provided mixed reading for shareholders with the near-term improvement contrasting with a still negative longer-term picture. The overall like-for-like sales for the third quarter were growth of 2%, however on the longer time frame of the nine months ending 31 March 2013 sale decreased by 3.2%.

Foolish takeaway

While the result for April's retail turnover looks weak, at least it was a positive, not a negative number. More importantly the trend estimate rose to 3.2%, which may give investors some confidence in the outlook for future retail sales.

Are you shopping for  high-yielding ASX shares? Get "3 Stocks for the Great Dividend Boom" in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading


Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »