Aussie retailers see 4.6% spending increase in December

It was driven by Cyber Monday, Boxing Day sales, and holiday shopping.

Australians boosted their spending in December, with total expenditure rising by 4.6% compared to 2023, reaching $36.991b, according to the Australian Bureau of Statistics (ABS).

The increase was driven by Cyber Monday, Boxing Day sales, and holiday shopping.

Household goods saw the largest increase, up 7%, followed by "Other Retailing," which includes cosmetics and recreational goods, rising 5.6%. Clothing, footwear, and accessories increased by 5%, and spending at cafes, restaurants, and takeaways rose by 4.7%. Food spending grew by 3.5%, whilst department store sales climbed 1.6%.

Fleur Brown, chief industry affairs officer of the Australian Retailers Association (ARA), welcomed the boost after a tough 2024. She noted that December is crucial for retail, with many businesses relying on the holiday season for up to two-thirds of their annual profits.

However, she cautioned that retailers face ongoing challenges, including high business costs, supply chain pressures, and retail crime. Brown urged the government to continue supporting the sector and welcomed the Federal Government's new small business strategy and financial boost.

Lindsay Carroll, interim CEO of the National Retail Association (NRA), said the December sales uptick signals improving consumer sentiment, but warned that it won’t be enough to sustain businesses through slower months.

She called for the Reserve Bank of Australia to consider rate cuts in February to help struggling retailers.