Consumers spent $37.2 billion across the country in April, according to figures released by the Australian Bureau of Statistics (ABS).
Australian retail turnover fell 0.1%, following a rise of 0.3% in March and 0.2% in February. Year on year, retail sales increased 3.8%.
“Retail spending eased in April, particularly on clothing purchases,” says ABS Head of Business Statistics.
“Falls were partly offset by a bounce-back in Queensland as businesses recovered from the negative impacts of ex-Tropical Cyclone Alfred…”
There were mixed results across the industries with the largest falls in clothing, footwear and personal accessory retailing (down 2.5%) and department stores (down 2.5%).
This was partially offset by rises in other retailing (up 0.7%) and household goods retailing (up 0.6%).
“Clothing retailers told us that the warmer-than-usual weather for an April month saw people holding off on buying clothing items, especially new winter season stock,” says Mr Ewing.
Having underpinned recent growth, food-related spending continued to rise, with growth in cafes, restaurants and takeaway food services (up 1.1%). This was partially offset by a fall in food retailing (down 0.3%).
“The rise in food-related spending was driven by more dining out in Queensland… The bounce-back comes after adverse weather negatively impacted cafe and restaurant sales,” says Mr Ewing.
Retail turnover rose in Queensland (up 1.4%) and Western Australia (up 0.4%).
“Queensland retailers recovered from [March’s] temporary business closures and fewer customers,” says Mr Ewing.
“In April, we saw higher spending in the industries most impacted by ex-Tropical Cyclone Alfred. More people dined out and made recovery purchases on household items like furniture and electrical goods.”
All other states and territories had a fall after growth in March.
Year on year sales
Year on year, there were increases across a mix of retail categories.
The biggest increases were in other retailing (5.3%), food (4.2%), cafes, restaurants and takeaways (3.9%), and household goods (3.8%). Spending was marginally up in clothing footwear and accessories (1.35%) and department stores remained steady (0% change).
Australian Retailers Association CEO Chris Rodwell says the spending trend this year remains slightly above 2024 levels which is reassuring for the retail sector, however cost-of-living pressures and economic uncertainty continue to impact consumer behaviour.
“It’s positive to see the continuation of the elevated growth trend that we’ve seen across the calendar year. However, retail businesses of all sizes remain vulnerable to the dual headwinds of global market volatility and enormous costs of doing business,” he says.
“While April growth dropped back slightly compared to March, it’s encouraging to see the steady performance across all retail categories. The results were also bolstered by Easter spending, which took place in April this year.”
Looking ahead
Mr Rodwell saysthe modest rate cut from the Reserve Bank of Australia in May will help bolster consumer confidence in coming months.
“However, we need to see substantially more cash rate reductions to generate the kind of retail recovery Australia needs. That’s why we urge the RBA to stay vigilant to opportunities to provide further relief,” he says.
“As a sector that employs one in 10 Australians and delivers $430 billion to our national economy, every Australian is impacted by our retail performance. Geo-political tensions created by the US tariffs are impacting business and consumer confidence, and we need to see a robust response from government to keep our Australian retailers stable, productive and competitive through this challenging period.
“From productivity measures to reduction in red tape, we urge policy makers to support the sustainability and growth of these vital retail employers as they continue to grapple with cost increases from rent, wages, energy, insurance as well as ongoing supply chain instability.”
