Steady Growth In Retail Sales Persists Through April
The latest monthly data from the Australian Bureau of Statistics showed a modest boost in consumer spending in April, with a 3.8% year on year increase over the same month in 2024.
Overall spending in retail categories totalled $37.2 billion, with increases across a mix of retail categories. The biggest increases were in ‘other retailing’ – including cosmetics, sports and recreational goods – (5.3%), food (4.2%), cafes, restaurants and takeaways (3.9%), and household goods (3.8%). Spending was marginally up in clothing footwear and accessories (1.35%) and department stores remained steady (0% change).
Australian Retailers Association (ARA) CEO, Chris Rodwell, said the spending trend this year remains slightly above 2024 levels which is reassuring for the retail sector, however cost-of-living pressures and economic uncertainty continue to impact consumer behaviour.
“It’s positive to see the continuation of the elevated growth trend that we’ve seen across the calendar year. However, retail businesses of all sizes remain vulnerable to the dual headwinds of global market volatility and enormous costs of doing business.
“Whilst April growth dropped back slightly compared to March, it’s encouraging to see the steady performance across all retail categories. The results were also bolstered by Easter spending, which took place in April this year.
“The modest rate cut from the Reserve Bank of Australia in May will help bolster consumer confidence in coming months. However, we need to see substantially more cash rate reductions to generate the kind of retail recovery Australia needs. That’s why we urge the RBA to stay vigilant to opportunities to provide further relief.
“As a sector that employs one in ten Australians and delivers $430 billion to our national economy, every Australian is impacted by our retail performance. Geo-political tensions created by the US tariffs are impacting business and consumer confidence, and we need to see a robust response from government to keep our Australian retailers stable, productive and competitive through this challenging period.
“From productivity measures to reduction in red-tape, we urge policy makers to support the sustainability and growth of these vital retail employers as they continue to grapple with cost increases from rent, wages, energy, insurance as well as ongoing supply chain instability.”
https://www.retail.org.au/media/steady-growth-in-retail-sales-persists-through-april