, Australia
Photo by Arina Krasnikova via Pexels

Retail spending in Australia reaches $24.04b in September

This is a 2.3% increase from the same month last year.

Australian retail spending reached $24.04b (AU$36.45b) in September, a 2.3% increase compared to the same month last year.

This growth occurs amid persistent financial pressures on consumers, according to the Australian Bureau of Statistics (ABS) as reported by the Australian Retailers Association (ARA).

Paul Zahra, CEO of ARA, welcomed the increase but cautioned that retailers continue to face significant economic challenges.

The ‘Other retailing’ category, which includes cosmetics and sports goods, saw the most substantial growth at 5.2%. The food sector also performed well, with spending rising by 3.1%. Cafes, restaurants, and takeaway services grew by 1.4%, while clothing, footwear, and accessories saw a slight increase of 0.8%. Household goods experienced a marginal rise of 0.03%, but department stores reported a decline of 0.2%.

Zahra urged the Reserve Bank of Australia to consider a cash rate cut in its upcoming meeting, arguing that this would enhance confidence in the retail sector as the critical Christmas shopping season approaches, a time when many discretionary retailers rely on significant profits.

Despite the positive growth figures, Zahra pointed out that rising interest rates and cost-of-living pressures are continuing to affect consumer spending.

He noted a trend toward small luxury purchases, often referred to as the ‘lipstick effect,’ where consumers prioritise affordable indulgences over larger expenses.

ARA said retailers are now preparing for the peak shopping season, with many consumers already beginning their Christmas shopping.

Moreover, Zahra noted the importance of major sales events like Black Friday and Cyber Monday for boosting holiday sales.
 

Join Retail Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Mars Wrigley bets on Asia’s chocolate boom
The US company expects the region’s rising middle class to eat more M&M’s and Snickers.
Stores
Food Innovators to serve up ‘anime’ diners in Singapore
CEO Kubota Yasuaki expects the city-state to become their gateway to other Asian countries.
Brands told to come clean about beauty care
Consumers are more discerning and can easily spot fake ingredient claims.
Swarovski cracks TikTok to scale luxury amongst Gen Zs
The Austrian glassmaker is working with influencers to connect with the Singaporean market.