Australians Paying Cash

Press, Volume CVI, Issue 31079, 7 June 1966, Page 17

Australians Paying Cash

(N.Z. Press Association—Copyright)

SYDNEY, June 5.

A drop in credit-buying by people in Sydney and Melbourne must be taken seriously, according to the president of the Australian Council of Retailers (Mr G. L. McCowan).

Mr McCowan says this in the Journal of the Retail Traders’ Association, which published a survey showing that people in Sydney and Melbourne are buying fewer goods on credit and more for cash. The survey shows that cash sales in Sydney Department stores between last July and December increased by 5.1 per cent. During the same period credit sales dropped by 2.7 per cent Melbourne figures show the

same increase in cash sales and a decrease in credit sales of 4 per cent Mr McCowan says in the journal that this may reflect a drop in demand as well, as more careful credit screening. “It is sufficient to point out that a decline in consumer credit is indicative of a slight loss in confidence among customers and this must be taken seriously,” he says. “It is conceivable that the publicity over bad debts may

have had the effect of tightening the credit control in existing stores and may also have deterred some retailers from reckless selling of appliances on credit.” The decline in the use oi credit for household items seemed to have occurred long before the recent drop in appliance sales. Consumers might be obtaining personal loans from finance companies to buy for cash, Mr McCowan said.