SALES of electrical goods in Kempsey have been given a boost by the combination of personal income tax cuts and the carbon pollution reduction scheme (CPRS) compensation payments.
This has also coincided with the start of the Olympic Games and both major retailers in Kempsey, Retravison and Betta, have reported strong sales of televisions and associated items.
The impending change over from analogue to digital television signals, which will happen in Kempsey in November, has also had an effect.
Nationally, overall retail sales jumped 1.2 per cent in May and a further 3.4 per cent in June to record the biggest two-month gain since $19 billion of stimulus payments were delivered to Australians between December 2008 and April 2009.
Kempsey Retravision owner Stuart Underhill said the effect of the tax cuts and CPRS compensation was noticeable.
“That is definitely the sense we are getting, that the two of these in combination is having an impact, and we are probably a bit up on where we were at the same time last year,” he said.
“It is not as big as the Kevin Rudd economic stimulus payments in 2009, and I think you can say the CPRS compensation is basically an economic stimulus.
“As well as televisions we have had strong sales of digital video recorders (DVR) so that you can record the games and watch them at a more reasonable time.”
Michael Wilson from Betta said that while sales had been good, stock supply issues had meant that not all products were always available.
“We have noticed an upswing of sales associated with the Olympics but this has been a world wide phenomenen so the manufacturers have been struggling to keep up,” he said.
“Also the digital television signals in southern NSW have been switched off so a lot of the stock is going down there as people realise they need a digital television.
“That is something that people in Kempsey need to start thinking about, you might have upgraded the television in lounge room but what about the kid’s room or the one I the kitchen or bedroom?
Mr Wilson said that ‘price erosion’ made it hard for retailers of electrical goods and computers.
“A computer that might have cost $2500 five years ago now costs half that, so you effectively have to sell twice as many to keep pace which is hard in a soft economy but we are doing OK,” he said
“I think the worst of it is probably behind us and we are now looking forward to the run-up to Christmas.”