Australian retail sales up 4.9% in June

It was driven by strong EOFY sales.

Retail spending in Australia rose 4.9% in June compared to the same time last year, according to new data from the Australian Bureau of Statistics (ABS). It was driven by strong end of financial year (EOFY) sales.

All retail categories recorded year-on-year growth. “Other retailing”, including cosmetics and sporting goods, saw the largest increase at 6.9%, followed by clothing, footwear and personal accessories (6%). Department stores rose 5.9%, household goods 5.6%, food retailing 4%, and cafes, restaurants and takeaway 3.3%.

Australian Retailers Association (ARA) CEO Chris Rodwell said the growth reflects improving consumer confidence but warned spending remains cautious, especially on big-ticket items.

“This is the highest monthly growth we’ve seen across the past year, compared to 2024 spending, which is a promising result during a period of challenging trading conditions," he noted.

"However, it’s important to call out that while retail sales have lifted, this doesn’t necessarily translate to a better operating position for retailers as EOFY discounts are more prominent in June,” he said.

Rodwell urged the Reserve Bank to cut interest rates, saying recent inflation figures support the move and that it would help drive spending in the lead-up to the peak retail season.

He also called on the Federal Government to cut red tape and tackle issues like payroll tax, freight costs, and retail crime — which costs the industry an estimated $9b annually.

Rodwell added that the treasurer should use the upcoming roundtable to focus on policies that strengthen Australia’s $430b retail sector.

He stressed that small retailers, hit hardest by the slow recovery, must be a top priority for policymakers.