AUSTRALIA | Retail spending grew by 4.6 percent in July compared to the same period last year, with the latest monthly data from the Australian Bureau of Statistics (ABS) showing AUD 37.7 billion.
All categories experienced year-on-year growth in July according to the ABS data.
Other retailing experienced the most significant increase (up 7.6 percent), followed by cafes, restaurants and takeaway (up by 6.7 percent), department stores and large online retailers (up 6.0 percent).
Spending increased in household goods retailing (up 5.4 percent), clothing, footwear and accessories (up 3.2 percent), and food retailing (up 2.3 percent).
“This is a solid start for the new fiscal year and maintains the higher spending trend we’ve seen across 2025. The challenge now is to sustain these better trading conditions, recognising that some retailers continue to confront difficult operating conditions,” said Australian Retailers Association (ARA) CEO Chris Rodwell.
“We are particularly concerned with supporting discretionary retailers and the country’s smaller retailers as we head towards peak season. It’s a time when many in our sector make up to two-thirds of their profits.”
To add to this, Rodwell said many households are still under intense family budget pressures. With inflation remaining in the target band, the RBA must remain vigilant to further opportunities for interest rate reductions.
The cost of doing business and supply chain management remains a challenge. As the ABS crime data reinforced, there is also a shocking wave of retail crime around the country, adding a layer of cost and challenge that is unsustainable for retailers.
“That’s why we are championing the importance of regulatory and red tape reduction by Federal and State governments to help reduce some of the unnecessary costs which put upward pressure on prices.”
Rodwell said the ARA would like to see a harmonised approach to payroll tax, planning, freight and logistics, environmental and waste regulation, and trading hours. It has also advocated for a coordinated national approach to tackling retail crime, which conservatively adds at least AUD 9 billion in costs to retailers each year.
The July figures are the first ABS statistics based on enhanced data from its Monthly Household Spending Indicator (MHSI), which has replaced the ABS Retail Trade data. (The ARA notes that whilst the MHSI provides broader and more timely insights into household consumption patterns, there is some variance in category data on the previous series.)
More FMCG news here
