Department store sales have plummeted amid a weaker than expected retail sales result from the beginning of the year.

The Australian retail sales figures for the month of January have risen slightly by 0.1 per cent, although it was expected to rise by 0.3 per cent, while department sales fell by 2.1 per cent.

BIS Oxford Economics market researcher Sarah Hunter tells John Stanley retail is still facing “a bit of a challening enviornment.”

“The real disappointment came through for department stores.

“Online sales now account for well over 5 per cent of all sales… I think department stores are perhaps one of the most vulnerable groups for that online alternative.”

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