Australia retail spending up 3.3% in May

All retail categories recorded year-on-year growth.

Retail spending in Australia grew 3.3% in May compared to the same month last year, reaching $37.3b, according to the Australian Bureau of Statistics (ABS). This is up from $36.1b in May 2024.

All retail categories recorded year-on-year growth. The strongest gains came from ‘other retailing’—including cosmetics, sporting and recreational goods—up 4.78%. Cafes, restaurants, and takeaway rose 3.83%, department stores 3.71%, clothing and accessories 3.5%, household goods 2.81%, and food 2.58%.

Australian Retailers Association (ARA) CEO Chris Rodwell said the growth is welcome but not enough to signal a recovery.

“May growth is slightly lower than what we’ve seen in recent months, however performance continues to track modestly above 2024 growth levels,” he said. “Whilst inflation has metered back, with the CPI figure for May coming in at 2.1%, consumer confidence remains soft.”

Rodwell urged the Reserve Bank to cut interest rates in next week’s meeting to support household spending.

“It’s clear we remain far from a retail recovery,” he said. “This means next week’s RBA decision on interest rates is pivotal.”

He also pointed to rising costs across leasing, wages, energy, and insurance as major pressures on retailers.

Rodwell also called on governments to ease the regulatory burden on businesses and focus on boosting productivity.

“Retail recovery is intrinsic to our economic recovery,” he said. “As a sector which employs one in ten Australians, we want to shift gears to see retailers move out of survival mode into truly thriving and helping power our economy.”