Australian retail sales up 2.3% in July

Retail spending reached $36.1b.

Australian retail sales in July 2024 grew by 2.3% compared to the same month last year, according to the Australian Bureau of Statistics (ABS).

Retail spending reached $36.1b, up from $35.3b in July 2023.

'Other retailing' categories, including cosmetics and sports goods, saw the strongest growth at 5.5%, followed by food sales, which increased by 3.2%. 

Household goods grew by 1.5%, whilst clothing, footwear, and department stores showed only slight gains of 0.5% and 0.1%, respectively. Meanwhile, cafes, restaurants, and takeaway services declined by 0.3%.

Paul Zahra, CEO of the Australian Retailers Association (ARA), attributed the modest growth in discretionary spending to ongoing mid-year sales and consumer focus on price and value. 

He noted that consumers are prioritising essentials whilst occasionally indulging in small luxuries.

Zahra also pointed to the tough conditions facing the retail sector in 2024, citing high costs, inflation, and other challenges. 

“Whilst there is great resilience within retail, we know there are many businesses in the sector especially small businesses,” he said. “The ARA continues to call for a targeted government support for vulnerable retailers who contribute to the nation’s $420bn retail sector.”

Additionally, Zahra stressed the importance of the upcoming peak shopping season for the industry's recovery. “Major shopping events in coming months include Halloween, Black Friday and Cyber Monday and the festive period, which will hopefully provide a much-needed boost to the industry.”