Australian retail turnover fell 0.1% in December, according to seasonally adjusted figures released by the Australian Bureau of Statistics (ABS).
This comes after growth of 0.7% in November and 0.5% in October. Year on year, retail sales increased 4.6%.
“Retail spending held firm following strong growth in recent months with promotional activity stretched across the quarter,” says ABS Head of Business Statistics Robert Ewing.
“Cyber Monday fell in early December and boosted spending to begin the month, particularly on discretionary items like furniture, homewares, electronics and electrical items.”
Mixed results
Turnover results were mixed across the industries.
Household goods retailing (up 1.6%) had the largest rise, with a fourth straight month of growth over 1%.
“Cyber Monday drove more spending on household goods as consumers took advantage of discounts on big ticket items,” says Mr Ewing.
Department stores (up 0.4%) and food retailing (up 0.1%) also rose.
“Food retailing was impacted by supply chain disruptions [in December], particularly in Victoria, which saw households shift some spending away from supermarkets,” says Mr Ewing.
The rises were offset by falls in clothing, footwear and personal accessory retailing (down 1.8%) and other retailing (down 1.4%).
Cafes, restaurants and takeaway food services also fell (down 0.5%). This followed a November rise of 1.4%, which was the largest since January 2024.
Year on year sales
Household goods saw the most significant increase (up 7%), followed by other retailing (up 5.6 % year-on-year). Clothing, footwear and accessories were up 5% on the same time in 2023, while spending at cafes, restaurants and takeaways increased 4.7%. Food increased 3.5% and spending at department stores rose 1.6%.
Australian Retailers Association Chief Industry Affairs Officer Fleur Brown says that these figures are a welcome uptick for retailers after a challenging 2024.
“December is a crucial month for retail, with many discretionary retailers making up to two thirds of their profits during the peak season period,” she says.
“From household goods such as kitchen appliances and electrical garden tools, to on-trend fashion items and cosmetics, it’s clear Australians rallied to the sales events and enjoyed splurging on gifts for their loved ones during the holidays.
“While these results are a relief for many, retailers continue to have a tough road ahead as they navigate a challenging landscape with pressures exacerbated by higher business costs, supply chain demands and the ongoing toll of retail crime.
“After many years of continued pressure, we are calling on the federal government to show support for the sector to ensure it can grow and thrive. We welcome the release of the government’s small business strategy and financial boost…
“Inflation is currently sitting within the prescribed range of the RBA. We think the Reserve Bank should consider starting the year off with a rate cut when spending is slow to bolster struggling retailers.”
