Australia’s retail spending increased modestly in March 2025, thanks to an improvement in turnover across all categories.
Australian Bureau of Statistics (ABS) data showed that retail spending reached $37.3 billion in March, up 4 per cent from the year-ago period.
Other retailing category, which includes cosmetics, sports, and recreational goods, posted the highest growth of 9 per cent as its sales amounted to $5.9 billion.
Clothing, footwear, and accessories grew 5 per cent to $3.1 billion.
Food and household goods both increased 4 per cent to $14.9 billion and $5.9 billion, respectively.
Department stores climbed 4 per cent to $2.0 billion while cafes, restaurants, and takeaway inched 1 per cent higher to $5.5 billion.
“Supermarket and grocery store sales were especially strong in Queensland where households stockpiled essentials in anticipation of Ex-Tropical Cyclone Alfred,” Robert Ewing, ABS head of business statistics, said.
However, the cyclone negatively impacted other categories as businesses had to temporarily stop trading and people were advised to stay home and avoid unnecessary travel.
“Events like these remind us how vulnerable the sector remains to sudden disruptions,” Lindsay Carroll, interim CEO at the National Retail Association (NRA), said.
“Retailers need greater support to adapt quickly and safely during extreme weather events, without sacrificing their livelihood.”
Fleur Brown, Chief Industry Affairs Officer at the Australian Retailers Association (ARA), also expressed caution despite the positive results in March.
“With a delay in interest rate relief, household budgets remain tight, and retailers are operating in a highly competitive and volatile environment with rising business costs,” Brown said.
“Any signs of stability in consumer spending are a welcome boost to business confidence, but we remain far from a retail recovery.”