The retail sector recorded its best performance for five years in 2013, according to the Australian National Retailers Association (ANRA).

ANRA analysed figures released by the Australian Bureau of Statistics on January 6, which showed retail turnover had increased by 3.2 per cent to reach more than $8.1 billion in 2013.

“Retailers are encouraged by today’s result and it has put the sector in good stead to record a similar result (or better) in the year ahead,” ANRA Chief Executive Officer Margy Osmond said in a January 6 media release.

Food retailing was the strongest performing sub-sector, delivering its best result in five years. Cafes, restaurants and takeaway food services recorded a year-on-year growth 10 per cent higher than previous years.

Modest gains were also experienced by retailers in the hardware and furniture sub-sectors, possibly due to an upturn in the housing market.

Spending on fashion and accessories was down in 2013, but activity in this area remained steady, indicating sales and discounting over the Christmas period may have affected values.

“Today’s result continues the run of positive results for the sector which is now experiencing its eighth consecutive month of gains. Most states are now tracking at around six to seven per cent year-on-year growth in turnover which is a positive sign for the sector’s ongoing success in 2014,” said Mrs Osmond.

If a strong year of sales in 2013 has encouraged you to expand your business or enter new markets, you may want to review your retail insurance policy to avoid any unexpected gaps in cover.

Failing to update your insurance policy as your business grows can lead to your organisation being underinsured which could affect your ability to make a claim in the future.

For more information, get in touch with MGA Insurance Brokers today.