The National Retail Association (NRA) has predicted that by the end of the 2015/16 financial year, Australia’s passion for property will have been a key factor behind strong growth in the hardware, building and garden supplies category.
The NRA’s economic modelling suggests retailers in home improvement are on track for a 6.9 per cent increase on the last financial year, which is well above the long-term average yearly growth of 4.7 per cent.
NRA Chief Executive Trevor Evans said the high turnover of established properties being snapped up by buyers was generating sizeable retail sales.
“All you have to do to see how this translates in real terms is catch up with a friend who’s just bought a house, and ask them how they’re settling in – chances are they’ll give you an almost immediate rundown on a bunch of little projects they’ve begun in order to spruce it up a little, and put their own personal stamp on it,” Mr Evans said.
“A quick glance may even reveal a few stray paint splatters on their arms, hammered thumbs or tell-tale gardener’s hands!” he said.
The NRA suggests that for every dwelling sold in Australia, an average of $3,145 is spent in the hardware sector, as new home owners stock up on items like paint, decorating supplies and landscaping products.
“Since July 2015, hardware, building and garden retailers have benefited from favourable economic conditions, which provided momentum for strong spending leading in to the Christmas period.
“The Australian economy is pretty robust, and consumer confidence is high, so buyers are really feeling that the time is right for investing in some DIY renovations and improvements around the home.
“The retail sector is really heading in the right direction through 2016, with all indications showing that consumers have returned to a period of solid, stable and sustainable spending.
“We expect that should these economic conditions continue into the fourth quarter of the financial year, the hardware, building and garden supplies category is on track for an estimated 6.9 percent increase,” he said.
For media enquiries please contact the NRA’s media unit on (07) 3240 0163 or 0467 792 013.