Retail spending for October reached $38.50 billion, up 5.7% from $36.42 billion in October 2024, according to data from the Australian Bureau of Statistics.

The Australian Retailers Association (ARA) and the National Retail Association suggest that this data demonstrates “continued momentum” for the sector, despite a sensitive economic environment and ongoing uncertainty around the interest rate outlook.

Growth was recorded across all major retail categories:

• Cafes, restaurants and takeaway food services – up 8.3%
• Other retailing (including online and recreational goods) – up 7.3%
• Household goods retailing – up 6.8%
• Department stores and large online retailers – up 6.7%
• Clothing, footwear and personal accessories – up 5.6%
• Food retailing – up 3.6%

ARA CEO Chris Rodwell says the results reflect retail’s steadily strengthening performance, after a long period of subdued spending.

“This is a robust result in what remains a challenging retail landscape. It reflects the steady growth that has characterised this year,” he says.

“October spending likely reflects a trend towards early Christmas shopping as households look to balance their budgets through the peak season period. ARA-Roy Morgan data predicted that more than half (51%) of gift buyers already made purchases by mid-October.”

Mr Rodwell, however, cautions that underlying conditions remain sensitive, as shoppers respond to mixed economic signals.

“Spending conditions remain uncertain with mixed signals regarding interest rates and that’s keeping some households cautious,” he says. “Even so, it’s pleasing to see such resilience which demonstrates that retailers are steadily returning to growth despite the challenges.”

With the peak trading season well underway, Mr Rodwell says the next few weeks are crucial for many retailers.

“Christmas trading is make-or-break for many retailers in discretionary categories,” he says.

“A solid October gives retailers the confidence to plan, roster and stock appropriately, but every week from here counts. Retailers are working extremely hard to deliver value and service, and consumers are responding.”