)
Australian shoppers spent almost $37 billion at retail in the final month of 2024 as December sales rose 4.6 per cent higher year-on-year, with the most significant increase seen for household goods at 7 per cent.
The total spend of $36.991 billion was also pushed up by a 5.6 per cent lift in the category 'other retailing' which includes cosmetics, sports and recreational goods, as well as a 5 per cent jump in clothing, footwear and accessories.
Spending at cafes, restaurants and takeaways only just outpaced retail overall with 4.7 per cent growth, while growth was slower for food and department stores with rates of 3.5 per cent and 1.6 per cent respectively.
Australian Retailers Association (ARA) chief industry affairs officer Fleur Brown says the latest figures, released today by the Australian Bureau of Statistics (ABS), are a welcome uptick for retailers after a challenging 2024.
"December is a crucial month for retail, with many discretionary retailers making up to two thirds of their profits during the peak season period," says Brown.
"From household goods such as kitchen appliances and electrical garden tools, to on-trend fashion items and cosmetics, it’s clear Australians rallied to the sales events and enjoyed splurging on gifts for their loved ones during the holidays.
The ARA claims the statistics show that Australians embraced Cyber Monday and Boxing Day sales along with festive spending. The National Retail Association's (NRA) interim CEO Lindsay Carroll says positive sales are a sign that consumer sentiment is healing, but it’s also a sign that Aussies won’t pass up a bargain.
"Discretionary spending was slack all through last year, so this boost is invaluable to retailers who rely on this spending category to get by," Carroll says.
"The holiday season sales boost isn’t enough to carry businesses through to the quieter months of the year with conservative spending habits likely to continue.
“Retailers have urged the Reserve Bank of Australia to cut interest rates in February after a boost from silly season sales in December."
Fleur Brown from the ARA adds that while the results are a relief for many, retailers continue to have a tough road ahead as they navigate a challenging landscape with pressures exacerbated by higher business costs, supply chain demands and the ongoing toll of retail crime.
"After many years of continued pressure, we are calling on the Federal Government to show support for the sector to ensure the sector can grow and thrive. We welcome the release of the Government’s small business strategy and financial boost announced today," Brown says.
The ARA and NRA are on aiming to complete a merger by the end of this financial year.
)
