Retail sales increased 4.3 per cent year over year to $37.8 billion in September, signifying a “strong foundation” for retailers as they enter the pre-Christmas sales season.
Australian Bureau of Statistics’ (ABS) Monthly Household Spending Indicator data shows that ‘other retailing’, which includes online and recreational goods, posted the highest sales growth of 7.2 per cent with its turnover reaching $6.6 billion.
Cafes, restaurants, and takeaways grew 6.2 per cent to $5.5 billion while household goods rose 4.9 per cent to $6.2 billion.
Department stores and large online retailers increased 3.6 per cent to $1.6 billion and clothing, footwear, and accessories climbed 3.5 per cent to $2.9 billion.
Food had the least sales growth of 2.4 per cent, with a turnover of $14.9 billion.
“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,” said Chris Rodwell, CEO of the Australian Retailers Association (ARA).
“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.”
“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.”
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