Australia retail growth eases in December as spending shifts earlier

 December sales reached $27.22b after early shopping shift.

Australia’s retail spending rose 4.8% year-on-year in December 2025, easing from 7% growth in November, with total sales reaching $27.22 (A$38.6b), according to Australian Bureau of Statistics data cited by the Australian Retail Council.

The council said consumers brought forward Christmas purchases into October and November during Black Friday promotions, resulting in a softer December outcome despite overall holiday demand.

Cafes, restaurants, and takeaway food services recorded the strongest annual growth at 8.2%, whilst discretionary segments including clothing, household goods and department stores registered slower increases.

Western Australia led state growth with a 7.6% rise, followed by Queensland at 6.3%, whilst New South Wales and Victoria each recorded growth of just over 3%.

Australian Retail Council Chief Executive Officer Chris Rodwell said households remain highly price-sensitive and are tightly managing spending amid cost-of-living pressures, adding that retailers continue to face rising interest rates, higher mortgage costs and increasing business expenses.

“Urgent economic reform that eases the cost of doing business will be critical if we’re to avoid a broader slowdown in consumer spending,” Rodwell said.

(US$1.00 = A$1.42)