Tuesday , September 29 2020
Breaking News
Home / National News / ‘Trying to stay afloat’: Traders feel strain as consumer spending plunges 22 per cent

‘Trying to stay afloat’: Traders feel strain as consumer spending plunges 22 per cent

Loading

“But if we stay in stage four much longer, it’s going to get harder and harder.”

Mr Enaty is not surprised at new data that shows consumers’ spending at cafes in Victoria is down 42 per cent compared to before the pandemic.

By contrast, in NSW, where restrictions have eased, cafe spending is up 18 per cent, according to the research covering August 17-23 by data analytics firm AlphaBeta and credit bureau illion.

Overall, spending in Victoria continues to decline, hitting 22 per cent below normal levels, whereas in NSW it is 3 per cent below average.

Spending across Australia is down 5 per cent on normal levels, which the report says is largely due to the situation in Victoria.

AlphaBeta director Dr Andrew Charlton said: “It’s clear that the Victoria lockdown is having a psychological spending impact across Australia.

“Confidence will only get back on track once there are clear measures in place – across all governments – about how we manage to live and work with the threat of COVID going forward.”

In Victoria, spending on fashion and leisure has dropped to 54 per cent of its normal level while in NSW, it is up 25 per cent. Spending on Victorian gyms is down 25 per cent compared with its pre-crisis level, whereas in NSW it is back to normal.

One sector that has boomed in Victoria is health services — including dentists, pharmacies and GPs — with spending up 100 per cent on normal levels.

And the online retail sector has spiked again in Victoria, up 21 per cent. NSW is down 14 per cent.

Supermarket spending has dropped to 12 per cent below normal in both Victoria and NSW, after spiking in Victoria during panic buying early in the stage four lockdown.

Mr Enaty, who has owned Scintilla Cafe for 14 years, says he lost many customers who live outside the five-kilometre travel radius dictated under stage four, and tradespeople who are out of work no longer work pop in.

“I’m a person who never stresses,” Mr Enaty said. “At the moment? It’s very mentally challenging and stressful. The financial side of it, just trying to stay afloat.

“I don’t think we’re in danger of folding, but it has set me back financially a long way.

“If stage four goes on longer – I’m hearing rumours it might go on a few more weeks – it’s going to be harder. I’m not making money. I’m here 70 hours a week and I’m making nothing.”

Sign up to our Coronavirus Update newsletter

Get our Coronavirus Update newsletter for the day’s crucial developments and the numbers you need to know. Sign up to The Sydney Morning Herald’s newsletter here and The Age’s here.

Most Viewed in National

Loading

About admin

Check Also

Ang ‘Snow leopard ‘ Rita Sherpa first to conquer Everest without oxygen

Local myth had it that before his record-breaking tenth ascent one doubter swore that he …