Retail spending has increased by 4.3% over the past year, according to new Australian Bureau of Statistics data.
In addition, the Monthly Household Spending Indicator for September shows total retail spending reached $37.8 billion, up from $36.2 billion in September 2024.
The Australian Retailers Association (ARA) and National Retail Association (NRA) said this reflects a “solid foundation” for retailers as they enter the vital pre-Christmas trading season.
Every major retail category has recorded growth over the year, led by:
- Other retailing (which includes online and recreational goods) – up 7.2%.
- Cafes, restaurants and takeaway food services – up 6.2%.
- Household goods retailing – up 4.9%.
- Clothing, footwear and personal accessories – up 3.5%.
- Department stores and large online retailers – up 3.6%.
- Food retailing – up 2.4%.
Across the states and territories, growth was broad-based, with Western Australia (up 6%), South Australia (up 5.1%) and Queensland (up 4.9%) leading the way. NSW and Victoria recorded moderate gains of 3.6% and 3.9% respectively.
ARA CEO Chris Rodwell says the data shows a steady and reassuring result for retailers heading into the most important trading period of the year.
“Consumers are maintaining confidence, and every major category is in positive territory – that’s welcome news after two years of subdued growth and cost-of-living pressures,” he says.
“Across the last few months, there has been a sustained up-tick in overall levels of retail spending. This gives retailers a solid foundation to plan, hire and invest as we move into Christmas. That said, not all retailers across all categories are experiencing the same results which underlines the need for continued focus on strengthening the Australian economy.”
‘Make-or-break’ season
Mr Rodwell says the November–December peak season can be “make-or-break” for many discretionary retailers.
“It accounts for a large share of annual profits and supports hundreds of thousands of jobs across the economy. Even a small lift in household spending at this time can make a big difference on the shop floor, in warehouses, and throughout local supply chains,” he says.
“We’re cautiously optimistic heading into the season. Retailers are working hard to deliver great value and service, and shoppers are responding. A steady spending environment provides the confidence needed to finish the year strongly.”
The ARA and NRA urge all Australians to get behind retailers that support the Australian economy.
“We are particularly concerned about the rise of ultra-cheap platforms like Temu and Shein, which are building market share but don’t contribute in the same way to Australian employment, and are not held to the same governance and regulatory standards,” says Mr Rodwell.
