Rate cuts will benefit Aussie retailers
Retailers across Australia have been facing an uphill battle since the recession took hold in 2008-09, but things may finally be starting to look up.
According to Deloitte, recent cuts to interest rates and Budget handouts will encourage more Aussies to use their credit and debit cards more frequently in the coming months.
The organisation stated that retail sales increased by 1.8 per cent in the March quarter in inflation-adjusted terms and current levels of growth are at their strongest since the end of 2009.
Reserve Bank of Australia chiefs have cut the national cash rate by 75 points in the past two months, which has given Aussies more confidence to purchase goods.
Deloitte conceded that the bleak global economic outlook could prompt more people to save money and pay off their debts, while also stating that certain areas of the retail sector will perform better than others.
Food stores have seen a sharp upturn in business in recent months, but sales at department stores and clothing boutiques have tumbled.
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