Australia retail spending up 3.8% in January

'Other retailing' led growth at 7%.

Retail spending in Australia reached $37.08b in January, up 3.8% from last year, according to the Australian Bureau of Statistics (ABS).

Other retailing, including cosmetics, sports, and recreational goods, led growth at 7%, followed by clothing, footwear, and accessories (4.5%). Spending at cafes, restaurants, and takeaways also rose 3.8%, food 3.1%, department stores 2.9%, and household goods 2.5%.

Australian Retailers Association (ARA) Chief Industry Affairs Officer Fleur Brown said January’s figures contrast with weaker spending trends in 2024 but warned that retail remains under pressure.

“Whilst some categories such as clothing and recreation were bolstered by back to school and holiday spending, January is traditionally a quieter month following the festive season and Boxing Day sales," she said.

“Looking ahead, whilst these results are heartening, retail is far from out of the woods. Cost-of-living pressures remain acute and it is likely to remain a challenging year for retail," Brown added.

Meanwhile, National Retail Association Interim CEO Lindsay Carroll said retailers face rising crime, business costs, and limited government support. “Ahead of the federal election, we are calling on all sides of government to come in on a unity ticket to bolster Australian businesses."

“We urge governments to promote policies that encourage digital transformation in small to medium businesses. AI advancements and technology would help vulnerable businesses combat the growing tide of retail crime," she added.

Carroll also warned of rising business insolvencies, saying urgent action is needed to prevent further closures.