Consumers spent $37.08 billion across the country in January, according to figures released by the Australian Bureau of Statistics (ABS).
Australian retail turnover rose 0.3%, following a fall of 0.1% in December and a rise of 0.7% in November. Year on year, retail sales increased 3.8%.
“While the pick-up in retail spending since mid-2024 has been boosted by more discretionary spending, [January’s] rise is mostly driven by food-related spending,” says ABS Head of Business Statistics Robert Ewing.
Food-related spending bounced back in January following falls in December with rises in both cafes, restaurants and takeaway food services (up 1.1%) and food retailing (up 0.7%).
“Bumper crowds across large-scale events, including record attendance at the Australian Tennis Open and cricket events, lifted spending in catering services,” says Mr Ewing.
“Food retailing also rebounded in January, particularly in Victoria where supply chain disruptions negatively impacted December supermarket spending.”
Most non-food industries rose, led by other retailing (up 2.4%), clothing, footwear and personal accessory retailing (up 2%) and department stores (up 0.6%).
This was partly offset by a large fall in household goods retailing (down 4.4%).
“The fall in household goods follows four straight rises driven by widespread discounting activity around Black Friday and Cyber Monday sales events,” says Mr Ewing.
“Consumers bought furniture and electrical goods in earlier months to take advantage of the large discounts on offer.”
Retail turnover rose in most states and territories, with the only exceptions being NSW (down 0.3%) and the Northern Territory which remained relatively unchanged.
Year on year sales
Other retailing saw the most significant increase (up 7% year-on-year), followed by clothing, footwear and accessories, which is up 4.5 % on the same time last year.
Spending at cafes, restaurants and takeaways increased 3.8%, food increased 3.1%, spending at department stores rose 2.9%, and household goods rose 2.5%.
Australian Retailers Association Chief Industry Affairs Officer Fleur Brown says while spending has naturally settled back following the festive season, January’s figures are a positive contrast to spending patterns throughout the majority of 2024.
“We are continuing to see a mixed performance across retail categories,” she says.
“While some categories such as clothing and recreation were bolstered by back to school and holiday spending, January is traditionally a quieter month following the festive season and Boxing Day sales.”
Looking ahead
Ms Brown says while these results are heartening, retail is far from out of the woods.
“Cost-of-living pressures remain acute, and it is likely to remain a challenging year for retail,” she says.
“The Reserve Bank of Australia’s April decision will be crucial in shaping consumer confidence and trading conditions. While interest rate decisions tend to have a lag effect on consumer spending, we are cautiously optimistic we will see some improved trading conditions ahead.”
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