Australia retail spending rises 5.7% to $38.50b in October

Early Christmas buying and broad category gains support monthly growth.

Australian retail spending rose 5.7% in October to $38.50b, up from $36.42b a year earlier, according to Australian Bureau of Statistics data.

The Australian Retailers Association (ARA) and National Retail Association (NRA) said the result shows steady momentum despite mixed economic signals and uncertainty around interest rates.

Category growth was led by an 8.3% rise in cafés, restaurants and takeaway food services, followed by a 7.3% increase in other retailing. Household goods and department store spending rose 6.8% and 6.7%, respectively.

Clothing and footwear gained 5.6%, whilst food retailing grew 3.6%, reflecting broadly stable consumer demand across discretionary and essential categories.

State-level spending also increased, with the ACT up 9% and Western Australia rising 7.6%. Queensland grew 6.7%, while New South Wales and South Australia each climbed 5.6%.

The ARA said early Christmas shopping contributed to October’s uplift, citing ARA–Roy Morgan data showing 51% of gift buyers had made purchases by mid-October.

The ARA said retailers remain cautious as households respond to competing economic pressures during the peak trading period.

It noted that domestic retailers face growing competition from overseas platforms operating under different regulatory and employment settings, with spending patterns in the coming weeks critical for discretionary categories.