Australia’s retail spending up 3.6% in February

The ‘other retailing’ category led growth with a 5.5% increase.

Australian retail spending hit $37.1b in February, up 3.6% from last year, according to the Australian Bureau of Statistics (ABS).

The ‘other retailing’ category, including cosmetics, sports, and recreational goods, led growth with a 5.5% increase. Food retailing rose 4.08%, whilst cafés (3.37%), department stores (3.23%), and household goods (2.89%) also saw gains. Clothing and accessories barely grew, up just 0.4%.

Despite the rise, cost-of-living pressures continue to impact spending. Australian Retailers Association (ARA) Chief Industry Affairs Officer Fleur Brown said the data shows stability but not recovery.

“We know household budgets remain tight, and retailers are operating in a highly competitive and volatile environment with rising business costs,” she said. “Any signs of stability in consumer spending are a welcome boost to business confidence, but we remain far from a retail recovery.”

National Retail Association Interim CEO Lindsay Carroll noted that Valentine’s Day helped boost sales but warned that business insolvencies are rising.

“Consumer sentiment is on the uptick, and February’s trading result is a reflection of that. Wages are up and inflation is down, so Aussies feel safer about spending,” she said.

“However, retailers are still struggling. Business insolvencies have shot up in the last couple of years, and the Federal Budget was a missed opportunity for the government to show the ailing sector a bit of love,” Caroll noted.

Retailers are calling for policy changes to boost investment and productivity, ensuring long-term stability for the industry.