Retail spending grew 3.7 per cent in August compared with the same month last year, reaching $37.8 billion, according to data released by the Australian Bureau of Statistics (ABS).
“Overall, this result reflects retailers continue to face very mixed conditions. It also reveals a reliance on major spending events to stimulate sales,” said Australian Retailers Association (ARA) CEO Chris Rodwell.
“Whilst trading remains above overall 2024 levels, unfortunately August growth dropped back compared to July (up 4.6 per cent yoy) and June (up 4.9 per cent yoy).”
The result has led the ARA and the National Retail Association (NRA) to call on the Reserve Bank of Australia (RBA) to consider a rate cut ahead of the peak Christmas sales period.
Growth in WA was up 5.6 per cent, Queensland was up 4.6 per cent, and Tasmania was up 4.6 per cent, with the growth in the NT up 4.4 per cent, followed by SA, which was up 4.0 per cent.
More subdued growth was observed in Victoria, where growth increased by 3.3 per cent, NSW, which rose by 2.3 per cent, and the ACT, which rose by 1.6 per cent.
By category, cafes, restaurants, and takeaway recorded the largest increase, up 7.0 per cent, followed by ‘other’ retailing, which was up 5.6 per cent, household goods increased 3.7 per cent and department stores and large online retailers saw a growth of 3.5 per cent.
Spending on food retailing increased 1.9 per cent and clothing, while footwear and accessories saw a slight increase of 1.8 per cent.
“Retailers want improved sales momentum as we enter the all-important peak season, where many discretionary retailers make up to two-thirds of their annual profits,” said Rodwell.
“However, these results reflect that many Australians still face significant budgetary constraints and that consumer confidence remains subdued.”
Rodwell said business owners struggled with increasing operational and supply chain costs and a surge in retail crime.
To help ease cost pressures on businesses and decrease prices for consumers, the ARA said it would continue to advocate for cutting unnecessary regulation and red tape at federal and state levels.
“We need to see a more consistent approach to payroll tax, planning, freight and logistics, environmental and waste regulation, and trading hours,” said Rodwell.
“Equally, we’re pushing for a coordinated national strategy to address retail crime, which currently costs the sector an estimated $9 billion annually plus untold emotional distress,” he said.
