Posted October 01, 2019 07:33:53While some of the biggest companies in the retail sector are enjoying record-breaking profits, a new report has found that Australian retail sales are on the verge of reaching a new record for the first time in more than a decade.

According to a report from Australian Retailers Association (ARPA), Australia’s retail sector is experiencing a surge in retail sales growth with an estimated 7.4 per cent increase in revenue over the past year.

That’s a record high for Australian retail, and is more than double the previous record for 2015, which saw a growth of 2.5 per cent.

“There is a clear momentum in the sector,” ARPA’s chief economist David Scharfenberg told The Australian Financial Review.

“It’s clear we’re in for another year of great growth.”

According to ARPA, there are more than 30,000 Australian retailers, including a total of 1,600 in the top five biggest retailers.

They are collectively making more than $1.3 trillion in revenue in Australia each year, but Scharfenburg said the rise in sales was driven by an increase in consumer spending.

“The average Australian spends around $150 on a day’s shopping,” he said.

“That’s more than 10 times the amount spent on a family of four.”ARPA is calling for retailers to “be more competitive” in order to keep up with the fast-growing consumer spending habits of consumers.

While the retail industry is enjoying record profits, ARPA is warning that a strong Australian dollar could have a major impact on the retailing industry’s future.

“We know that a high dollar is a key driver of growth, particularly for retailers,” Scharfberg said.

“We think the retail economy is likely to be on the back foot over the next 12 months as we head into the post-Brexit recession.”

The ARPA report comes as a group of retailers in Australia are gearing up for a surge of new retailing locations in the coming months.

Australian retailers are planning to open up new retail locations in Sydney, Melbourne, Perth and Adelaide by the end of next year, with more locations planned for Queensland and New South Wales.