Australian retail spending surged 5.7 per cent in October, according to the latest figures from the Australian Bureau of Statistics (ABS), with spending reaching $38.5 billion.
The highest growth sector was cafes, restaurants, and takeaway food services, recording an 8.3 per cent year-on-year increase from 2024, while the lowest growth was in food retailing, up by 3.6 per cent.
The Australian Retailers Association (ARA) and the National Retail Association (NRA) said today’s ABS data showed continued momentum for the sector, despite a sensitive economic environment.
“This is a robust result in what remains a challenging retail landscape. It reflects the steady growth that has characterised this year. October spending likely reflects a trend towards early Christmas shopping as households look to balance their budgets through the peak season period,” said ARA CEO Chris Rodwell.
“ARA-Roy Morgan data predicted that more than half (51 per cent) of gift buyers already made purchases by mid-October.”
But Rodwell warned that the growth doesn’t overshadow uncertain economic conditions.
“Spending conditions remain uncertain with mixed signals regarding interest rates, and that is keeping some households cautious,” he added. “Even so, it’s pleasing to see such resilienc,e which demonstrates that retailers are steadily returning to growth despite the challenges.”
State-by-state data showed that spending increased the most in WA, at 7.6 per cent, and the least in the ACT, at 2.9 per cent.
Looking ahead, Rodwell said the festive period is a chance for retailers to capitalise on this growth.
“Christmas trading is make-or-break for many retailers in discretionary categories,” he added. “A solid October gives retailers the confidence to plan, roster and stock appropriately, but every week from here counts. Retailers are working extremely hard to deliver value and service, and consumers are responding.
“We continue to urge shoppers to get behind the businesses that contribute to our economy, particularly as ultra-cheap offshore platforms grow market share without meeting the same regulatory, governance or employment obligations,” he concluded.
