Australian retail turnover rose 1.2% in June, according to figures released today by the Australian Bureau of Statistics (ABS).
This follows a rise of 0.5% in May after a flat April. Year on year, sales increased 4.9%.
“The strong June month rise in retail turnover was driven by discounts linked to sales and new product releases,” says ABS Head of Business Statistics Robert Ewing.
“After steady growth throughout the year, mid-year sales events increased spending on discretionary items like furniture, electrical goods and clothing items.”
Non-food related spending drove most of the rise in retail turnover. There were increases in all industries, led by household goods retailing (up 2.3%) and other retailing (up 1.9%).
“Consumers are targeting sales events with a focus on value for big ticket items like household furniture, bedding, electronic devices and TVs,” says Mr Ewing.
“Turnover for electrical and gaming retailers was lifted further by the much-anticipated launch of the Nintendo Switch 2, which delivered record sales.”
There were also rises in department stores (up 1.9%) and clothing, footwear and personal accessory retailing (up 1.5%), boosted by end-of-financial year sales and sales of winter clothing.
Food-related spending rose after a fall last month. While food retailing (up 0.9%) bounced back, spending in cafes, restaurants and takeaway food services fell 0.4%.
Year on year sales
All categories experienced year-on-year growth. Other retailing experienced the most significant increase (up 6.9%), followed by clothing, footwear and personal accessory retailing (up 6%).
Spending increased in department stores (up 5.9%), household goods retailing (up 5.6%), food retailing (up 4%) and cafes, restaurants and takeaway (up 3.3%).
“This is the highest monthly growth we’ve seen across the past year, compared to 2024 spending, which is a promising result during a period of challenging trading conditions,” says Australian Retailers Association CEO Chris Rodwell.
“However, it’s important to call out that while retail sales have lifted, this doesn’t necessarily translate to a better operating position for retailers as EOFY discounts are more prominent in June.”
Looking ahead
To bolster spending, Mr Rodwell says it’s important the RBA seize the moment and reduce interest rates.
“The improved inflation outcomes reported [this week] provided the impetus for a rate cut. This will help create momentum in the lead up to the peak retail period towards the end of the year,” he says.
“There’s also a big agenda the Federal government can action to support Australian retailers as they contend with volatility from trade wars and ultra-low-cost global competitors.
“If we want a stronger retail economy, we need a laser focus on cutting red tape and harmonising laws that add unnecessary costs and put upward pressure on prices.
“Some areas ripe for reform include payroll tax, planning, freight and logistics, environmental and waste regulation, and trading hours. It can also step up to co-ordinate a national approach to retail crime. Conservatively, retail crime is a $9 billion cost to retailers every year.
“We urge the Treasurer to use the upcoming roundtable to focus on policies that will strengthen the long-term future of Australia’s $430 billion retail sector – enabling it to invest, grow and create jobs.
“Our small retailers are especially vulnerable to the protracted economic recovery and have borne the brunt of these ongoing challenges – as the backbone of the Australian economy, their recovery must be a priority for policymakers.”
